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                     Thesis

                      On

 Role Of Packaging On Consumer Buying Behavior




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         Role Of Packaging On Consumer Buying Behavior




                               A dissertation
                       Presented to the Faculty of the
                     Management Sciences Department,
                     Superior Group of Colleges College,
                         University Campus, Lahore.




In particular fulfillment of the Requirements for the Degree of Masters in
                          Business Administration




                                    By




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                 OFFICIAL RECOGNITION STATEMENT:



I ………….. declare that this thesis is my own work and has not been submitted in any
form for another degree or diploma at any university or other institute of tertiary
education. Information derived from the published and unpublished work of others has
been acknowledged in the text and a list of references is given in the bibliography. I
hereby certify that this paper represent my own invention, that where the language of
others is set out, quotation marks so indicate , and that correct credit is given where I
have used the language , ideas, expression or writing of a different.




                                                      Signature




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           Role Of Packaging On Consumer Buying Behavior

                                    A dissertation
                           Presented to the Faculty of the
                         Management Sciences Department,
                        Superior Group of Colleges College,
                             University Campus, Lahore.



In particular of the Requirements fro the Degree of masters in Business Administration


                                         By




                                  Approved By:

                ______________________________________
                ______________________________________
                ______________________________________
                ______________________________________


                                  Received By:

                ______________________________________
                ______________________________________
                ______________________________________
                ______________________________________
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                                    DEDICATION


We are dedicating our work to our parents and respected teacher Prof Ilyas , who have
played a vital role in our studies and have guided us at every step with their precious
ideas. No doubt this dedication is insufficient and we can never repay for the role which
they have played in our studies but we are sure that their work will prove itself an asset in
our life




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                                 Acknowledgement

I am very thankful to …………. which gave us valuable information. We pay gratitude
…………. giving valuable guideline.

We are also very thankful to all the participants who helped us a lot by giving up to date
information.

We are very proud of our teacher …………. whose help and instructions enable us to
bind papers into project manner. We are very thankful to him.




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                                        PREFACE

“The most beautiful things we can experience are the mysterious .It is source of all true
art and science”


                                    (Albert Einstein, 1930)

This thesis is based on the topic which is assigned to us by our respected teacher Prof
Ilyas, the topic which I took for it:




 Role Of Packaging On Consumer Buying Behavior


In the thesis, I have covered all the topics related to Packaging and Buying Behavior..




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                               Table of Contents
Abstract                                                      11
Chapter # 1
Introduction                                                  12
Objectives of the study                                       13
Key terms Defined                                             14
Research Question                                             14
Chapter # 2
Literature Review                                             15
Chapter # 3
Theoretical foundation                                        26
Consumer Buying Behavior                                      26
Stages of the Consumer Buying Process                         27
Types of Consumer Buying Behavior                             29
Packaging                                                     39
Objectives of packaging                                       39
Theatrical Frame work                                         41
Dependent Variable                                            42
Independent Variable                                          42
       Packaging color                                        43
       Background-image                                       44
       Packaging Material                                     44
       Font Style                                             45
       Design of wrapper                                      45
       Printed Information                                    45
       Innovation                                             46


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Chapter # 4
Tools of Data Collection                                       47
Sampling Technique and Sample                                  47
Measures                                                       47
Methodology                                                    48
Chapter # 5
Reliability Test                                               50
Descriptive Analysis                                           51
Scatter-Plot Matrix                                            55
Correlation Analysis                                           62
              Hypothesis 1:                                    62
              Hypothesis 2:                                    63
              Hypothesis 3:                                    64
              Hypothesis 4:                                    65
              Hypothesis 5:                                    66
              Hypothesis 6:                                    67
              Hypothesis 7:                                    68

Regression Analysis                                            69
Equation for regression                                        70
              Hypothesis 1:                                    72
              Hypothesis 2:                                    72
              Hypothesis 3:                                    72
              Hypothesis 4:                                    72
              Hypothesis 5:                                    72
              Hypothesis 6:                                    72
              Hypothesis 7:                                    72




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Chapter # 6
Discussion:                                                  74
Conclusions                                                  75
Recommendations                                              78
Summary                                                      79
Areas of future research                                     79
References                                                   80
Appendix                                                     85
       Questionnaire                                         85




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                                  Abstract

The aim of this thesis is to get the A study to point toward role of packaging on
consumer buying behavior. The basic purpose of behind it to find out how such factors
are behind the success of packaging. According to this research I try to find the positive
relationship between independent variable and dependent variables. For collecting the
data I will use the questionnaire, while for analysis I will use SPSS 16. A sample of 145
consumers will be selected to test the reliability of the model. The significance of the
study, its delimitation and limitations are discussed. The research is based in Pakistan.
The consumer buying behavior is dependent variable. The packaging is the most
important factor. Packaging elements like Packaging color. Background Image,
Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation
is taken as predictors. Due to increasing self-service and changing consumers’ lifestyle
the interest in package as a tool of sales promotion and stimulator of impulsive buying
behavior is growing increasingly. So package performs an important role in marketing
communications, especially in the point of sale and could be treated as one of the most
important factors influencing consumer’s purchase decision. Literature analysis on
question under investigation has shown that there is no agreement on classification of
package elements as well as on research methods of package impact on consumer’s
purchase decision. By this article we seek to reveal elements of package having the
ultimate effect on consumer choice. Taking into consideration that package could be
treated as a set of various elements communicating different messages to a consumer;
the research model was developed and tested in order to reveal impact of visual and
verbal package elements on consumer’s purchase decisions.



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                                            CHAPTER
                                              #1



     INTRODUCTION




 CHAPTER CONTENTS
   Introduction
   Objectives of the study
   Key terms Defined
   Research Question



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                                  Introduction
In nowadays competitive environment the role of package has changed due to increasing
self-service and changing consumers’ lifestyle. Firms’ interest in package as a tool of
sales promotion is growing increasingly. Package becomes an ultimate selling
proposition stimulating impulsive buying behavior, increasing market share and reducing
promotional costs.
According to Rundh (2005) package attracts consumer’s attention to particular brand,
enhances its image, and influences consumer’s perceptions about product. Also package
imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi & Speece,
2004), works as a tool for differentiation, i.e. helps consumers to choose the product from
wide range of similar products, stimulates customers buying behavior (Wells, Farley &
Armstrong, 2007). Thus package performs an important role in marketing
communications and could be treated as one of the most important factors influencing
consumer’s purchase decision. In this context, seeking to maximize the effectiveness of
package in a buying place, the researches of package, its elements and their impact on
consumer’s buying behavior became a relevant issue.
Literature analysis on question under investigation has shown that there is no agreement
on classification of package elements as well as on research methods of package impact
on consumer’s purchase decision. Some of researchers try to investigate all possible
elements of package and their impact on consumer’s purchase decision (Silayoi &
Speece, 2004; Silayoi & Speece, 2007; Butkeviciene, Stravinskiene & Rutelione, 2008),
while others concentrates on separate elements of package and their impact on consumer
buying behavior (e.g., Vila & Ampuero, 2007; Madden, Hewett & Roth, 2000;
Underwood et al., 2001; Bloch, 1995). Moreover some researchers investigate impact of
package and its elements on consumer’s overall purchase decision (e.g., Underwood et
al., 2001), while others – on every stage of consumer’s decision making process (e.g.,


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Butkeviciene et al., 2008). Furthermore the abundance of scientific literature on this issue
do not provide unanimous answer concerning impact of package elements on consumer’s
buying behavior: diversity of the results in this area depends not only on research models
constructed and methods employed, but on the context of the research too. All above
mentioned confirms the necessity to investigate this issue in more detail. In the light of
these problematic aspects, research problem could be formulated as following question:
what elements of a package have an ultimate effect on consumer purchase decision?
The aim of this paper – basing on theoretical analysis of package elements and their
impact on consumer‘s purchase decision empirically reveal the elements having the
ultimate effect on consumer choice in a case of different products.
.


Objectives of the study

    • To find out the effect of packaging on the buying behavior.

    • Theoretical analysis of package elements and their impact on
       consumer‘s purchase decision empirically reveal the elements having
       the ultimate effect on consumer choice in a case of different products


    • To check the effect of packaging elements on the buying behavior.

    • To measure the relative impact of each packaging element on the
      consumer.

    • To identify the elements which should be highlight while design the
      packaging.




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Key terms Defined

Consumer Buying Behavior


Process by which individuals search for, select, purchase, use, and dispose of goods and
services, in satisfaction of their needs and wants

Packaging

Packaging can be defined quite simply as an extrinsic element of the product. Packaging
is the container for a product



Research Question:

Main Question

                Role of Packaging on consumer buying behavior.




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                                             CHAPTER
                                               #2



LITERATURE REVIEW




 CHAPTER CONTENTS
   Literature Review




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                        Literature Review

Rita Kuvykaite (2009) has descriptive research. According to Rita package attracts
consumer’s attention to particular brand, enhances its image, and influences consumer’s
perceptions about product. Also package imparts unique value to products
(Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), works as a tool for
differentiation, i.e. helps consumers to choose the product from wide range of similar
products, stimulates customers buying behavior (Wells, Farley & Armstrong, 2007). Thus
package performs an important role in marketing communications and could be treated as
one of the most important factors influencing consumer’s purchase of package, its
elements and their impact on consumer’s buying behavior became a relevant issue. He
basing on theoretical analysis of package elements and their impact on consumer‘s
purchase decision empirically reveal the elements having the ultimate effect on consumer
choice. Research methods that Rita used is systematic and comparative analysis of
scientific literature; empirical research There are six variables that must be taken into
Consideration by producer and designers when creating efficient package: form, size,
color, graphics, Material and flavor. Similarly, Kotler (2003) distinguishes six elements
that according to him must be evaluated when employing packaging decisions: size, form,
material, color, text and brand. The research result of Rita shows the impact of package
elements on consumers purchase decisions can be stronger. He conclude that Package
could be treated as one of most valuable tool in today’s marketing communications,
necessitating more detail analysis of its elements and an impact of those elements on
consumers buying behavior. The impact of package and its elements on consumer’s
purchase decision can be revealed by analyzing an importance of its separate elements for
consumer’s choice.




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Bed Nath Sharma Dec. 2008 studied New Consumer Products Branding, Packaging and
Labeling in Nepal. This paper focuses on existing practice of branding, packaging and
labeling of new products in consumer product manufacturing units. The study method was
Descriptive presentation of facts collected through questionnaire survey concerned with
different section of consumer new products (soap, biscuit, noodles, cigarettes and
The study further investigates the new consumer product packaging and labeling status
in manufacturing units. They are aware about the value of packaging and labeling.
Majority of the consumer products 84.37% (27 out of 32 responses) are using product
label as a simple tag attached to the product or an elaborately designed graphic that is part
of the package.


Alice Louw (2006) has studied The Power of Packaging the people belonged to Age
20-30 years old University graduates were taken for research.20 respondents were asked
to rank 5 water bottles in terms of their overall appeal. Following this, they were given a
questionnaire and asked to rate each of the bottles on 20 statements related their
packaging. For the remaining 20 respondents, the order of the process was switched: they
rated the bottles first and then ranked them. The statements ranged from functional
attributes (e.g. easy to drink from, right size) to more emotive, non-functional attributes
(e.g. I like the colors, high quality). For both groups there was a clear winner and a clear
loser in terms of the rankings. However, although the top brand chosen was consistent in
both groups, the worst brand differed. The group that ranked the bottles first showed more
variance in terms of their responses (Variance 1.33) than the second group who rated the
attributes first (variance 0.89). This Packaging plays an important role in the marketing
context. His research results that right packaging can help a brand carve a unique position
in the marketplace and in the minds on consumers.


John Th Gersen (2000) worked on The Ethical Consumer. Moral Norms and Packaging
Choice published in Journal of Consumer Policy Kluwer Academic Publishers. Printed in

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the Netherlands. The paper presents a study of a case with these two characteristics:
Danish consumers’ choice presents a study of a case with these two characteristics: Danish
consumers’ choice of environment-friendly packaging. With regard to this case, the
evidence supports the claim. A majority of Danish consumers have developed personal
norms about choosing environment-friendly packaging and the personal norm is a
significant predictor of their (self-reported) propensity to choose environment-friendly
packaging in the supermarket.


Renaud LUNARDO 2007 has a great research on the influence of label on wine
consumption. its effects on young consumers’ perception of authenticity and purchasing
behavior The main objective of the paper is to identify the effects of authenticity
on purchase behavior. They used a repertory grid (RG) approach as a methodological
framework in order to know which pattern of features is better at inducing purchase. All
the relationships between authenticity provided by the label of bottles and consumer
behavior attributes (performance risk, perceived price and purchase intentions) have all
been tested by using linear regressions. This study was intended to provide a more
complete understanding of the influence of the authenticity perceive from the label of
bottled wine. As an attempt to extend the research on the influence label of bottled wine
can have on consumers’ decisions of buying, the current it is clear from these findings is
the major role played by labels.


L Renaud 2007 worked on The Influence of Eco-Labeling on Consumer Behavior. The
main objective of this study was to assess the relative importance of the labeling in
Packaging compared to other product attributes (like brand, price, etc.) for consumers’
buying decisions. The methodological approach that they chose was discrete choice
analysis, which is particularly powerful for this kind of analysis. Further this study
attempts to analyze if the importance of the labeling and packaging differs between
product groups. They surveyed a total of 302 customers; Two thirds of the interviews were

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conducted in the German-speaking. The Variables chose within this study are , present
mood, time, buying purpose With regard to sustainability marketing, Time. The most
important result of analysis is the significant willingness to pay for Packaging energy
efficient products.


Adelina Broadbridge & Henry Morgan (2007), consumer buying behavior and perception
toward retail and brand baby products. A two-stage research methodology consisting of
both qualitative and quantitative research techniques was adopted. The population was
defined as ‘parents of children under the age of five who use baby care products’.
Both the qualitative and quantitative research showed that respondents adopted similar
risk reduction strategies in their purchase of baby care products. This research
investigated consumer perceptions and buying behavior of baby care products. The
results of the primary research indicated that consumers need to feel confident with the
product in terms of reliability and performance and packaging.


Bytyqi Hysen*, Vegara Mensur (2008) have research on analysis of consumer buying
behavior in regard to dairy products in kosovo. This survey was carried out by the
Department of Livestock and Veterinary Sciences, Agriculture Faculty of Prishtina,
Kasovo during 2007. Interviews of 304 respondents were conducted in super-markets
(677) and mini-markets (397) and later 23 interviews were completed in green market
mainly for Sharri cheese and curd. To study the reasons for choosing milk products upon
supply, a coding approach from 1- 5 was used (1 = very important; 2 = highly important;
3 = average; 4 = less important; 5 = not important). Perception of consumers about dairy
products was assessed using different variables i.e. habits, trust, price, quality, package,
age of consumer, origin of product, type of shop, brand and gender of consumer. It was
conclusion after analysis that the packaging has great effect on the purchase of dairy
products.


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Rita Kuvykaite1, Aistė Dovaliene2, Laura Navickiene3 (2009) worked on impact of
package elements on consumer purchase decision economics & management. Material
are the most important visual elements for purchasing both milk (size and material 3.80)
and washing-powder (resp.: 3.87 and 3.41); whereas, in this case form, color and graphic
could be treated as unimportant elements of package. When analyzing importance of
verbal elements, it could be stated that product information (4.24 for milk and 4.06 for
washing-powder) and country-of-origin (resp.: 4.22 and 3.88) are the most important
elements. Furthermore its worth to add, that producer and brand couldn’t be
underestimated too, because the importance of both of these elements is treated by
customers above the average. Comparing the impact of visual and verbal elements of
package on consumer’s purchase decision it could be stated that verbal elements are more
important than visual ones, when purchasing both milk and washing-powder. According
to the research model developed the impact of package’s elements on consumer’s
purchase decision depending on time pressure, consumer’s involvement level and
individual characteristics were analyzed.


H Ahasanul ,(K Ali 2009) measured the Factors Influencing Buying Behavior of Piracy
Impact to Malaysian. A structured questionnaire was used to collect data whereby it was
served as primary data to answer the research questions and objectives planning to find
out the factors that plays a vital role about consumers perception towards pirated
products. It can be identified that the dependent variable is consumer perception on
piracy. Where else the independent variables would be divided to social influence,
personality/believe, culture, and the economy. These are the factors that could influence
consumers’ perception on piracy thereby supporting out dependent variable. Social
influence would include susceptibility, which means an individual might purchase a
pirated product merely because his/ her friend or family members bought the product and
introduced it to them.


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Ulrich R. Orth (2009) worked on Packaging Design as resource for the construction of
Brand Identity. A thorough review of the literature on packaging design reveals that there
are no meaningful guidelines for developing holistic packaging design, Shapes, Finishes,
Sizes, Images, Typography, Colors, Impressions, Purchase Intention, and Brand. This
research was conducted by collecting information and data in four stages. First, a review
of the branding literature determined a list of strategically relevant brand impressions for
wine. Second, appropriate wine packaging design elements were identified and a sample
of real and representative designs was selected. Third, professionals in the design and
advertising industry rated wine packaging designs on the previously identified design
elements. This research aimed at generating guidelines for managing strategic brand
impressions, namely brand identity created by the wine packaging design


Kriti Bardhan Gupta (2009) has study on Consumer Behavior for Food Products in India.
primary data was collected from 326 respondents in Uttar Pradesh and National Capital
Region The relative importance of various food purchasing criteria was estimated for four
different food categories, food and vegetables; milk and milk products; food grains and
pulses; and processed foods on 1-5 scale, The present study explored the consumer
behavior for food products in India from different perspectives. People accepted the fact
that their food habits get affected with the shifting to a new region but many basic buying
and consumption behavior do not change. Some of the changes in buying and
consumption behavior of relocated people, which were observed after their settlement to
a new region, were not significantly different from the level of changes in behavior of
non-moving people. However, compared to the last 10 years, people have started
preferring more healthy foods and are willing to try out new dishes. They tend to learn
cooking and eating new food items after relocation without discontinuing their traditional
food items. There is also influence of children on the type of food items that they eat.
This paper has shown that impulse buying is indeed a relevant factor in CE retailing, thus
justifying the use of sales packaging. However, optimization is still important. From an

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economical and environmental perspective it is very costly to apply sales packaging (with
additional material use and transport volume) to products that do not need them, or to
apply them in an ineffective way. Economical costs and environmental impact can be
expressed in a single score, indicating the packs performance. To allow proper
management of the pack design the sales performance should be expressed in as simple a
way as possible, preferably also a single score. As calculating the sales performance is
impossible a test will need to be used. The pressure from time-to-market in the CE
industry, demands that the test be relatively simple.


S Nuntasaree and Dr. E Barry (2008) published a paper with subject of a model of male
and consumer behavior in buying skin care products in Thailand.. The conceptual model
of male consumer behavior in buying skin care products beliefs in product attributes
Quality, Price, Brand, Packaging, Advertising, Promotion, Salesperson, Distribution. This
study used a quantitative research method. A convenience sample with a shopping mall-
intercept technique was employed for the sampling method. The closed-ended
questionnaire developed from standard questions of relevant literature was chosen as a
research instrument. The Statistical Package for the Social Sciences program (SPSS)
version 15.0 was used in this study with a 0.05 level of significance for all of the
statistical assessments. The data set was screened and examined for incorrect data entry,
missing values, normality and outliers.


Several studies have investigated issues such as packages as a means of attracting the
attention of consumers (Underwood et al., 2001; Garber et al., 2000; Goldberg et al,
1999; Schoormans & Robben, 1997). Other studies researched packages as a means of
communication as well as a means of communicating brand and product meaning
(Underwood & Klein, 2002; Garber et al., 2000, Schoormans & Robben, 1997; Gordonet
al., 1994; Homer & Gauntt, 1992; Rigaux-Bricmont, 1981; McDaniel & Baker,1977).


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Packages are found to attract attention (Underwood et al., 2001; Garber et al.,
2000;Goldberg et al., 1999; Schoormans & Robben, 1997). In fact, Goldberg et al. (1999)
found that by dismissing such non-verbal signs as colors, the attention to verbal signs can
be increased. Pictures on packages are emphasized to attract attention, particularly when
consumers are not very familiar with the brands (Underwood et al., 2001).


Furthermore, packages are claimed to attract attention when their appearances are not
typical within a product class (Garber et al., 2000; Schoormans & Robben 1997). In other
words, past research has discovered that deviating packages attract attention. Other
studies show that deviating package colors and shapes attract attention (Garber etal.,
2000; Schoormans & Robben 1997). Underwood et al. (2001), on the other hand, found
that pictures on packages attract attention particularly in cases when consumers are less
familiar with a brand. Studies that have focused on other single signs than pictures on
packages have found that such single package signs as colors (Gordon et al., 1994), brand
names (Rigaux-Bricmont, 1981), and materials (McDaniel & Baker, 1977) convey brand
meaning.


Pires Gon¸calves, Ricardo (2008) worked on Product Characteristics and Quality
Perception, according to him When they choose among competing products consumers
are faced with quality and product performance uncertainty, hence, they rely on cues as
extrinsic attributes, for instance brand, price, package and warranty, as signals of
perceived quality. Little research has been done on packages as extrinsic attributes used
by consumers as signs of perceived quality, thus this study is a small contribution to that
lack of scholarly research on packages. Colors and shapes are important elements of
marketing strategies, and they are both essential features of packages, especially in
product labels. Labels are one of the most important features of product packaging, and
they are designed to communicate a message. The model proposed in this study builds on
previous models of consumer quality perception and signals of quality from product cues.

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In this research, colors and shapes combinations in labels are considered as the extrinsic
attributes used as signals of quality by consumers.


Liang Lu (2008) worked on a paper :Packaging as a strategic tool University of Halmstad
school of Business and Engineering. Packaging is an important part of the product that
not only serves a functional purpose, but also acts as a mean of communicative
information of the products and brand character. Packaging must be functional; it must
protect the products in good storage, in shipment and often in use. Besides, it has also the
function that can give customers the ease of access and use on the purpose of
convenience. After looking at Kolter theory about packaging, we will turn to different
theory relating to packaging design and its important elements in order to help us to solve
the first research question.


Judy Rex, Stuart Wai and Antonio Lobo (2003), it is An Exploratory Study into the
Impact of Color And Packaging as Stimuli in the Decision Making Process for a Low
Involvement Non-Durable Product The consumers and the manager agreed that important
factors when deciding which packet of potato crisps to purchase were the quality, the
brand and the price of the product, with flavor also being an important factor for the
consumers. The consumers used a constant sum scale (out of 100) to rate the six attributes
of flavor, quality, brand, price, size and shape, and the color of the packaging. Overall, the
consumers indicated that the flavor of the product was
easily the most important stimulus when selecting potato crisps with an average rating of
38 points. This was about twice as important as the quality (21 points), which was more
important than the brand (14 points) and the price (13 points). While brand and price were
of about equal importance,
P.H.K.Prathiraja and A.Ariyawardana (2003) has a great study in the impact of
lutritional labeling on Consumer Buying Behavior. This study shows that consumers use
nutritional labeling when making a purchasing decision and that it is especially because

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of health consciousness. A majority of the respondents revealed that they are willing to
pay something additional for the nutritional information provided on food items. Of those
who are willing to pay something additional, a greater proportion was in the age category
36 to 50 years, have had tertiary education and the households had less than 4 members.


K Sony (2008) studied the consumer responses toward attribute framing in product
packaging. The main purpose of this study is to investigate the impact of message
framing, level of involvement, and numerical difference on consumer response. Fresh-
milk product was chosen as the object for experiment. This study has the following
suggestion for packaging design based on the findings. Fresh milk is commonly
considered as health-related product. The study is advantageous in giving marketers a
more thorough picture of how message framing affects consumer response in various
numerical alternatives and level of involvement. It will also be helpful in developing
successful packaging strategy. For future study, different types of products can be
investigated further.


Assoc. Professor Jane (2005), Consumer Response to Sponsorship Leveraged
Packaging (SLP). Structural equation modeling (SEM) was used to analyses the data from
the experiment. This program of research aims to test a model that examines the structural
relationships between SLP and consumer attitudes and purchase intentions toward the
sponsors’ products as well as the factors that impact this relationship. Research suggests
sponsorship leverage packaging may act in a similarly way to celebrity endorsement on
product packaging, implying that FMCG brands may benefit from marketing strategies
that communicate the sponsorship relationship on packaging. It is critical that brand
managers identify the affect SLP has on consumer behavior and evaluate the degree to
which it can enhance communication of the sponsorship relationship in the marketplace.
This paper outlines a framework of consumer response to SLP, proposing a three step
process of exploratory and experimental methodologies. The outcomes from the research

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will contribute to a better understanding of sponsorship effects on consumer behavior and
provide managers with the means to develop more effective branding strategies and
promotions.




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                                            CHAPTER
                                              #3



Theoretical Foundation




  CHAPTER CONTENTS
    Theoretical foundation
    Consumer Buying Behavior
    Stages of the Consumer Buying Process
    Types of Consumer Buying Behavior
    Packaging
    Objectives of packaging
    Theatrical Frame work
    Dependent Variable
    Independent Variable


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                   Theoretical Foundation

Theoretical frame-work focuses on the relationship between the dependent and
independent variables. The distinction between dependent and independent variables is as
important in a comparative study as in a regression analysis. Dependent variable in case
of a comparative study is the one which we aim to predict and independent variables here
are the ones who are used to predict the dependent variable.



  Role of Packaging in consumeR Buying
                                   BehavioR.

Consumer Buying Behavior


Process by which individuals search for, select, purchase, use, and dispose of goods and
services, in satisfaction of their needs and wants. See also consumer decision making.
Purchase decision making pattern that is a complex amalgam of needs and desires, and is
influenced by factors such as the consumer's
(1) Societal role (parent, spouse, worker, etc.),
(2) Social and cultural environment and norms, and
(3) Aspirations and inhibitions
Buying Behavior is the decision processes and acts of people involved in buying and
using products.




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Need to understand


Why consumers make the purchases that they make?
What factors influence consumer purchases?
The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:
Buyer’s reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when and
how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.


Stages of the Consumer Buying Process


Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase.
All consumer decisions do not always include all 6 stages, determined by the degree of
complexity...discussed next.
The 6 stages are:


Problem Recognition


(Awareness of need)--difference between the desired state and the actual condition.
Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.




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Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that
you need a new pair of shoes.


Information search


Internal search, memory.
External search if you need more information. Friends and relatives (word of mouth).
Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
chinese food
indian food
burger king
klondike kates etc


Evaluation of Alternatives


Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/
weight alternatives or resume search. May decide that you want to eat something spicy,
Indian gets highest rank etc.
If not satisfied with your choice then returns to the search phase. Can you think of
another restaurant? Look in the yellow pages etc. Information from different sources may
be treated differently. Marketers try to influence by "framing" alternatives.




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Purchase Decision


Choose buying alternative, includes product, package, store, method of purchase etc.


Purchase


May differ from decision, time lapse between 4 & 5, product availability.
Post-Purchase     Evaluation--outcome:    Satisfaction   or   Dissatisfaction.   Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties, after
sales communication etc.
After eating an Indian meal, may think that really you wanted a Chinese meal instead.


Types of Consumer Buying Behavior


Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a
product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek information
about a certain products and brands but virtually ignores others.


High involvement purchases--Honda Motorbike, high priced goods, products visible to
others, and the higher the risk the higher the involvement.
Types of risk:
Personal risk
Social risk
Economic risk



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The four type of consumer buying behavior are


Routine Response/Programmed Behavior


Buying low involvement frequently purchased low cost items; need very little search and
decision effort; purchased almost automatically. Examples include soft drinks, snack
foods, milk etc.


Limited Decision Making
Buying product occasionally. When you need to obtain information about unfamiliar
brand in a familiar product category, perhaps. Requires a moderate amount of time for
information gathering. Examples include Clothes--know product class but not the brand.


Extensive Decision Making


Complex high involvement, unfamiliar, expensive and/or infrequently bought products.
High degree of economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend a lot of time seeking information and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go
through all six stages of the buying process.


Impulse buying, no conscious planning.


The purchase of the same product does not always elicit the same Buying Behavior.
Product can shift from one category to the next.
For example:



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Going out for dinner for one person may be extensive decision making (for someone that
does not go out often at all), but limited decision making for someone else. The reason
for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends
will also determine the extent of the decision making.


Categories that Affect the Consumer Buying Decision Process


A consumer, making a purchase decision will be affected by the following three factors:
Personal
Psychological
Social
The marketer must be aware of these factors in order to develop an appropriate MM for
its target market.
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making?
Young people purchase things for different reasons than older people.
Psychological factors
Psychological factors include:
Motives
A motive is an internal energizing force that orients a person's activities toward satisfying
a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can identify motives
then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
Physiological
Safety


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Love and Belonging
Esteem
Self Actualization


Need to determine what level of the hierarchy the consumers are at to determine what
motivates their purchases.


Perception


What do you see?? Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. IE we chose what info we pay attention to,
organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and
touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is
linked to an event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs. Advertisers that use comparative advertisements (pitching one product against
another), have to be very careful that consumers do not distort the facts and perceive that
the advertisement was for the competitor. A current example...MCI and AT&T...do you
ever get confused? Selective Retention-Remember inputs that support beliefs, forgets
those that don't. Average supermarket shopper is exposed to 17,000 products in a
shopping visit lasting 30 minutes-60% of purchases are unplanned exposed to 1,500
advertisements per day. Can't be expected to be aware of all these inputs, and certainly
will not retain many. Interpreting information is based on what is already familiar, on
knowledge that is stored in the memory.




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Ability and Knowledge


Need to understand individual’s capacity to learn. Learning, changes in a person's
behavior caused by information and experience. Therefore to change consumers' behavior
about your product, need to give them new information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate American consumers about
changes in SA. Need to sell a whole new country. When making buying decisions, buyers
must process information. Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who have
knowledge of a product. Non-alcoholic Beer example: consumers chose the most
expensive six-pack, because they assume that the greater price indicates greater quality.


Attitudes


Knowledge and positive and negative feelings about an object or activity-maybe tangible
or intangible, living or non- living.....Drive perceptions. Individual learns attitudes
through experience and interaction with other people. Consumer attitudes toward a firm
and its products greatly influence the success or failure of the firm's marketing strategy.
Attitudes and attitude change are influenced by consumer’s personality and lifestyle.
Consumers screen information that conflicts with their attitudes. Distort information to
make it consistent and selectively retain information that reinforces our attitudes. IE
brand loyalty. There is a difference between attitude and intention to buy (ability to buy).


Personality


All the internal traits and behaviors that make a person unique, uniqueness arrives from a
person's heredity and personal experience. Examples include:


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Work a holism
Compulsiveness
Self confidence
Friendliness
Adaptability
Ambitiousness
Dogmatism
Authoritarianism
Introversion
Extroversion
Aggressiveness


Competitiveness.


Traits affect the way people behave. Marketers try to match the store image to the
perceived image of their customers.
There is a weak association between personality and Buying Behavior; this may be due to
unreliable measures. Nike ads. Consumers buy products that are consistent with their self
concept.


Lifestyles


Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in
US until 1920's. Now an assault by the American Academy of Dermatology.


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Social Factors


Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.


Opinion leaders


Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase


Roles and Family Influences


Role...things you should do based on the expectations of you from your position within a
group.
People have many roles.
Husband, father, employer/e. Individuals role are continuing to change therefore
marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:


   •     Many family decisions are made by the family unit

   •     Consumer behavior starts in the family unit

   •     Family roles and preferences are the model for children's future family (can reject/
         alter/etc)



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   •   Family buying decisions are a mixture of family interactions and individual
       decision making

   •   Family acts an interpreter of social and cultural values for the individual.

   •   The Family life cycle: families go through stages, each stage creates different
       consumer demands:

   •   bachelor stage...most of BUAD301

   •   newly married, young, no children...me

   •   full nest I, youngest child under 6

   •   full nest II, youngest child 6 or over

   •   full nest III, older married couples with dependant children

   •   empty nest I, older married couples with no children living with them, head in
       labor force

   •   empty nest II, older married couples, no children living at home, head retired

   •   solitary survivor, in labor force

   •   solitary survivor, retired




Reference Groups


Individual identifies with the group to the extent that he takes on many of the values,
attitudes or behaviors of the group members.


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Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to reference
groups. Marketers get the groups to approve the product and communicate that approval
to its members. Credit Cards etc.!!
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase decision depends on an
individuals susceptibility to reference group influence and the strength of his/her
involvement with the group.


Social Class


An open group of individuals who have similar social rank. US is not a classless society.
US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer
luxury cars Mercedes.
Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.
Lower-upper class, 1.2%, newer social elite, from current professionals and corporate
elite
Upper-middle class, 12.5%, college graduates, managers and professionals
Middle Americans-middle class, 32%, average pay white collar workers and blue collar
friends
Working class, 38%, average pay blue collar workers
Lower Americans-lower class, 9%, working, not on welfare


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Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of products that a
person buys or uses.
Lower class people tend to stay close to home when shopping; do not engage in much pre
purchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social influences on consumer
behavior. All operate within a larger culture.


Culture and Sub-culture


Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous
group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture determines
what people wear, eat, reside and travel. Cultural values in the US are good health,
education, individualism and freedom. In american culture time scarcity is a growing
problem. IE change in meals. Big impact on international marketing.
Different society, different levels of needs, different cultural values.
Culture can be divided into subcultures:


Geographic regions


Human characteristics such as age and ethnic background.
IE West Coast, teenage and Asian American.
Culture effects what people buy, how they buy and when they buy.




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What is packaging?


The definitions of ‘packaging’ vary and range from being simple and functionally
focused
to more extensive, holistic interpretations. Packaging can be defined quite simply as an
extrinsic element of the product (Olson and Jacoby (1972)) - an attribute that is related to
the product but does not form part of the physical product itself. “Packaging is the
container for a product – encompassing the physical appearance of the
container and including the design, color, shape, labeling and materials used”
(Arens,1996).


Objectives of packaging


Packaging and package labeling have several objectives:


• Physical Protection – Protection of the objects enclosed in the package from
shock, vibration, compression, temperature, etc.


• Barrier Protection - A barrier from oxygen, water vapor, dust, etc.


• Containment or Agglomeration - Small objects are typically grouped together            in
one package for transport and handling efficiency. Alternatively, bulk
Commodities (such as salt) can be divided into packages that are a more suitable
Size for individual households.


• Information transmission - Information on how to use, transport, recycle, or


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Dispose of the package or product is often contained on the package or label.


• Reducing theft - Packaging that cannot be re-closed or gets physically damaged
(Shows signs of opening) is helpful in the prevention of theft. Packages also
Provide opportunities to include anti-theft devices.


• Convenience - features which add convenience in distribution, handling, display,
Sale, opening, re-closing, use, and re-use.




• Marketing - The packaging and labels can be used by marketers to encourage
Potential buyers to purchase the product.

Packaging may be looked at as several different types. For example a transport
package or distribution package can be the shipping container used to ship, store, and
handle the product or inner packages. Some identify a consumer package as one which is
directed toward a consumer or household.

Packaging may be discussed in relation to the type of product being packaged: medical
device packaging, bulk chemical packaging, over-the-counter drug packaging,
retail food packaging, military materiel packaging, pharmaceutical packaging, etc.




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                            Theatrical Frame work


     Independent Variable




      Packaging color


Background Image


    Packaging Material                           Dependent Variable
 

                                                Consumer Buying
        Font Style                                 Behavior



    Design of wrapper


    Printed Information


        Innovation

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Independent Variable


    1. Packaging color

    2. Background Image

    3. Packaging Material

    4. Font Style

    5. Design of wrapper

    6. Printed Information

    7. Innovation

Dependent Variable


Consumer Buying Behavior


                                    Packaging color
Color plays an important role in a potential customer’s decision making process, certain
colors set different moods and can help to draw attention. One good example of
successful use of color psychology is in the Apple iPod advertisements; they use simple
tri tone color schemes of black, white and a bright background color. The bright
background color is to give the advertisement a fun feel and the contrasting white on
black is to focus attention.




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Meaning of the Color Blue
Blue is the most common favorite color and is liked by both genders. Blue is seen as a
trustworthy, peaceful and calm color and is often related to the sky or water. Blue is
usually cool and quiet but more electric shades can give a dynamic feel. Although blue
has the benefits of gender indifference and being the most common favorite color, the
overuse of blue can seem cold or uncaring. Blue is often used because it is the designer’s
favorite color but after considering the meaning of other colors, another color may be a
better choice.


Meaning of the Color Green
Green is related to life and nature; if you want to give your product a natural feel use
green. Green is the second most popular color and the most popular shades of green are
the blue-greens, which should be expected when blue and green are the two most popular
colors. Yellow-greens should be avoided around food products as the color will act as an
appetite-depressant. As well as the natural feel greens have, they can also signify money,
health and power.


Meaning of the Color Yellow
Yellow is a very useful color because it is the most easily noticed, it will grab the
attention of a person so can be a good choice for things such as magazine advertisements
which may usually be ignored due to ad blindness. Yellow signifies happiness, optimism
and warmth but also caution. The main advantage of yellow is its attention grabbing
feature so a combination of blue and yellow can be a successful color scheme which
could create a cool and calm mood from the blue but still draw attention because of the
yellow.



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A sealed pack of diced pork from Tesco. It shows the cooking time, number of servings,
'display until' date, 'use by' date, weight in kg,price, price to weight ratio in both £/kg and
£/lb, freezing and storage instructions. It says 'Less than 3% Fat' and 'No Carbs per
serving' and includes a barcode. The Union Flag, British Farm Standard tractor logo, and
British Meat Quality Standard logo are also present.



                                      Background-image


The background image property specifies the background image for an element.
When setting a background image, authors should also specify a background color
property that will be used when the image is unavailable. Note also that when the image
is available, it is rendered on top of the background color. Thus, in any transparent areas
of the image, the background color will be visible.


                                  Packaging Material


Any material used especially to protect something- packing, wadding.         Consumer      can
change its decision regarding Packaging material. High quality Packaging attract
consumer then low quality Packaging. The first packages used the natural materials
available at the time: Baskets of reeds, wineskins (Bota bags),wooden boxes,
pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials
were    used    to   form    packages     as    they    were    developed:     for   example,
early glass and bronze vessels. The study of old packages is an important aspect
of archaeology. Iron and tin plated steel were used to make cans in the early 19th century.

Paperboard cartons and corrugated fiberboard boxes were first introduced in the late 19th
century. Packaging advancements in the early 20th century included Bakelite closures

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on bottles, transparent cellophane over wraps and panels on cartons, increased processing
efficiency and improved food safety. As additional materials such as aluminum and
several types of plastic were developed, they were incorporated into packages to improve
performance and functionality. So packaging material have strong have with buying
behavior.



                                        Font Style


The font style of Packaging grab customer attraction. The up gradation of IT technology
have support this feature. The successful companies have best practices of the font
styles. They hire specialist in composing which create mind blowing and attractive font
styles. The attractive package has innovative font style. So we can say that there is
relation between font style and buying behavior


                                  Design of wrapper


The over all design also play a vital role in attracting the consumer. Mostly the children
of 10-18 years are so sensitive to the design of wrapper. The companies try their best to
create attractive design of packaging


                                 Printed Information
       Container or wrapper for a consumer product that serves a number of purposes
       including protection and description of the contents, theft deterrence, and product
       promotion. The labels on packages are important components of the overall
       marketing mix and can support advertising claims, establish brand identity,
       enhance name recognition, and optimize shelf space allocations.


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       The consumer can change his decision on the basis of information printed on the
       packaging. Mostly in Merchandises and daily FMCG the consumer can perform
       evaluation on the basis of printed information.

                                       Innovation


Innovative packaging may actually add value to the product if it meets a consumer need
such as portion control, recyclability, tamper-proofing, child-proofing, easy-open, easy-
store, easy-carry, and non breakability.
Manufacturers today strive to have packaging that maintains the key equities of the
brand, has stand out appeal on the retailer’s shelf, and is sustainable but with lower
production costs. The customer can adopt product on the basis of its innovative
packaging, which shows the relation between buying behavior and innovation of
packaging.




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                                           CHAPTER
                                             #4



Data & Methodology




 CHAPTER CONTENTS
   Tools of Data Collection
   Sampling Technique and Sample
   Measures
   Methodology




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                      Data & Methodology

Tools of Data Collection:

In order to find data on Role of packaging on consumer buying behavior. I will collect

data on four variables: The first benefit to use questionnaire technique is that

result.

Sampling Technique and Sample

The Population of my study will be students and educational. Institutions of Pakistan in

which the sample size of 150 students will be taken for conducting the study by using

simple random sampling in order to generalize the findings in the particular sector.

Measures:

. There were at least 25 questions in the survey obtaining data for one variable and some
questions were directly obtaining data with no complications. The sample of questioner
is available in appendix-1. Measure for each variable is defined below:


Dependent Variable
Consumer Buying Behavior
Independent Variable


Packaging color

Background Image

Packaging Material

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Font Style

Design of wrapper

Printed Information

Innovation



Each of above mentioned variable was measure by asking the seven questions by using

the 5-points itemized rating type scale ranging from (1) strongly disagree to (5) strongly

agree

Methodology:

To make analysis of data I will use Spss software in which we will make analysis in to
two parts where part one will lead descriptive statistics that will be use to “describe and
summarize data and include measures of central tendency (average) and dispersion (the
spread of data or how close each other is to the measure of central tendency)”


    1. Descriptive analysis
I have used first techniques for generating result is descriptive statistics. It shows
minimum, maximum, and Mean values of data.


    2. Scattered plots
A scatter plot is a type of mathematical diagram using Cartesian coordinates to display
values for two variables for a set of data. The data is displayed as a collection of points,
each having the value of one variable determining the position on the horizontal axis and
the value of the other variable determining the position on the vertical axis. This kind
of plot is also called a scatter chart,

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   3. Correlation
The Pearson's correlation is used to find a correlation between at least two continuous
variables. The value for a Pearson's can fall between 0.00 (no correlation) and 1.00
(perfect correlation). Other factors such as group size will determine if the correlation is
significant. Generally, correlations above 0.80 are considered pretty high.


   4. Multiple regressions

Linear regression analysis estimates the coefficients of a linear equation, involving one or
more independent variables, that best predict the value of the dependent variable.




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                                              CHAPTER
                                                #5



 Empirical Findings




 CHAPTER CONTENTS
 Reliability Test
 Descriptive Analysis
 Scatter-Plot Matrix
 Correlation Analysis
 Regression Analysis
 Equation for regression




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                     Empirical Findings

Reliability Test
                               Dependent Variable


                                                              The Value of Cronbach's 
                              Reliability Statistics
                                                              Alpha is bigger then 0.7 and 
                            Cronbach's 
                              Alpha          N of Items
                                                              also positive, which shows 

                                      .782                2
                                                              the reliability of dependent 
                                                              variables.




                              Independent Variable


The data of independent variables or predictors is reliable. Because the value of
Cronbach's  Alpha is 0.858 which is greater then 0.7. The value is also positive, 
so the data used for analysis is reliable.

                                 Reliability Statistics

                              Cronbach's 
                                 Alpha           N of Items

                                          .858                7




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                                 Descriptive Analysis


                                           Table 5.1

                                       Descriptive Statistics

                             N          Minimum       Maximum       Mean      Std. Deviation

       Buying_Behavior           145              1             5      3.73              .920

       Valid N (listwise)        145




       In the above table 5.1 the minimum values, maximum values, mean values and
the values of standard deviation of dependent Variable have been shown. Mean value
provides the idea about the central tendency of the values of a variable. Number of
observations of each variable is 145. Standard deviation and the extreme values
(minimum in comparison to maximum value) give the idea about the dispersion of the
values of a variable from its mean value. The Minimum value is 1 while Maximum value
is 5. The Mean value is 3.73 with standard deviation of 0.92


                                           Table 5.2

                                       Descriptive Statistics

                             N          Minimum       Maximum       Mean      Std. Deviation

       Packing_Color             145              1             5      3.55              .924

       Valid N (listwise)        145


       In the above table 5.2 the minimum values is 1, maximum values 5, and mean
values 3.55 while the values of standard deviation is 0.924. Mean value provides the idea

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about the central tendency of the values of a variable. Number of observations of each
variable is 145.
                                          Table 5.3

                                      Descriptive Statistics

                            N          Minimum       Maximum       Mean      Std. Deviation

       Background               145              1             5      3.66              .942

       Valid N (listwise)       145



 The above table 5.3 the minimum value of 1 and maximum value of 5. The
  values can be deviated by 0.942. Which means that the mean value can
                        varied by +0.942 or -0.942.

                                          Table 5.4

                                      Descriptive Statistics

                            N          Minimum       Maximum       Mean      Std. Deviation

       Quality_Packing          145              1             5      3.72              .924

       Valid N (listwise)       145



 The above table 5.4 the minimum value of 1 and maximum value of 5. The
  values can be deviated by 0.924. Which means that the mean value can
                        varied by +0.924 or -0.924.




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                                           Table 5.5

                                       Descriptive Statistics

                             N          Minimum       Maximum       Mean      Std. Deviation

       Font_Style                145              2             5      3.71              .849

       Valid N (listwise)        145



       In the above table 5.5 the minimum values is 1, maximum values 5, and mean
value is 3.71 while the values of standard deviation is 0.849. Mean value provides the
idea about the central tendency of the values of a variable. Number of observations of
each variable is 145.


                                           Table 5.6

                                       Descriptive Statistics

                             N          Minimum       Maximum       Mean      Std. Deviation

       Wraper_Design             145              1             5      3.70              .927

       Valid N (listwise)        145

In the above table 5.6 the minimum values is 1, maximum values 5, and mean value is
3.70 while the values of standard deviation is 0.927. Mean value provides the idea about
the central tendency of the values of a variable

                                           Table 5.7




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                                     Descriptive Statistics

                               N         Minimum       Maximum       Mean      Std. Deviation

      Printed_information          145             1             5      3.68              .992

      Valid N (listwise)           145

In the above table 5.7 the minimum values is 1, maximum values 5, and mean value is
3.68 while the values of standard deviation is 0.992. Mean value provides the idea about
the central tendency of the values of a variable

                                          Table 5.8

                                     Descriptive Statistics

                               N         Minimum       Maximum       Mean      Std. Deviation

      Packing_Innovation           145             1             5      3.55              .953

      Valid N (listwise)           145




In the above table 5.9 the minimum values is 1, maximum values 5, and mean value is
3.55 while the values of standard deviation is 0.953. Mean value provides the idea about
the central tendency of the values of a variable.




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                                Scatter-Plot Matrix

                                     Figure 5.9




Figure 5.9 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and color of packaging. If we observe

then the flow of line is come from right to left which shows the positive relationship

between buying behavior and color of packaging. This means that if the attractive colors




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                                                                        Page | 61




are used in packaging then consumer will purchase product and the above results have

been confirmed by the table of correlations.




                                      Figure 5.10




Figure 5.10 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and background of packaging. If we

observe then the flow of line is come from right to left which shows the positive

relationship between buying behavior and color of packaging. This means that if the




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                                                                         Page | 62




attractive background are used in packaging then consumer will purchase product and the

above results have been confirmed by the table of correlations.




                                      Figure 5.11




Figure 5.11 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and quality of packaging. If we observe

then the flow of line is come from right to left which shows the positive relationship

between buying behavior and quality of packaging. This means that if the fine quality is


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                                                                        Page | 63




used in packaging material then consumer will attract and the above results have been

confirmed by the table of correlations.




                                      Figure 5.12




Figure 5.12 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and font style used in packaging. If we




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                                                                    Page | 64




observe then the flow of line is come from right to left which shows the positive

relationship between buying behavior and quality of packaging.




                                    Figure 5.13




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                                                                           Page | 65




Figure 5.13 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and design of wrapper. If we observe

then the flow of line is come from right to left which shows the positive relationship

between buying behavior and wrapper design. This means that attractive wrapper will

attract consumer and the above results have been confirmed by the table of correlations.




                                      Figure 5.14




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                                                                         Page | 66




Figure 5.14 shows the results of scatter plot matrix where we intend to have some idea

about the relationship between buying behavior and design printed information. If we

observe then the flow of line is come from right to left which shows the positive

relationship between buying behavior and wrapper design. This means that if the printed

information is used in packaging then consumer will attract and the above results have

been confirmed by the table of correlations.



                                      Figure 5.15




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                                                                                          Page | 67




Figure 5.15 shows the results of scatter plot matrix where we intend to have some idea
about the relationship between buying behavior and Packaging Innovation. If we observe
then the flow of line is come from right to left which shows the positive relationship
between buying behavior and wrapper design. This means that if the printed information
is used in packaging then consumer will attract




                                             Correlations

                                               Table 5.16

                                                   Correlations

                                                             Buying_Behavior    Packing_Color

          Buying_Behavior        Pearson Correlation                       1              .591
                                 Sig. (2-tailed)                                          .000
                                 N                                       145              145

          Packing_Color          Pearson Correlation                     .591                   1
                                 Sig. (2-tailed)                         .000
                                 N                                       145              145

          **. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis 1:

H1: there is relationship between Buying Behavior and Packing color
H0: there is no relationship between Buying Behavior and Packing color

Table 5.16 represents the table of correlations. Where two variables – buying behavior
and Packing color– are positively correlated (r= .591, p = .000). There is moderate


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                                                                                            Page | 68




relation between these two variables which is significant. We will accept H1 and reject
H0.

 So we can say that the attractive packaging color can attract consumer. Consumer likes
the colored packaging. It also implies that using attractive colors in packaging we can
grab customer attention.




                                               Table 5.17


                                                Correlations

                                                              Buying_Behavior       Background

           Buying_Behavior        Pearson Correlation                           1          .554
                                  Sig. (2-tailed)                                          .000
                                  N                                       145               145

           Background             Pearson Correlation                     .554                   1
                                  Sig. (2-tailed)                         .000
                                  N                                       145               145

           **. Correlation is significant at the 0.01 level (2-tailed).



Hypothesis 2:

H1: there is relationship between Buying Behavior and Background of Packing.
H0: there is no relationship between Buying Behavior and Background of Packing.




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                                                                                           Page | 69




Table 5.17 represents the table of correlations. Where two variables – buying behavior
and Background of Packing are positively correlated (r= .554, p = .000). There is
moderate relation between these two variables which is significant. We will accept H1
and reject H0.

It mean that the customer can adopt product on the behalf of its packaging background.
This result is also useful to marketer so that they create products with best possible
background image.




                                               Table 5.18

                                                   Correlations

                                                             Buying_Behavior    Quality_Packing

          Buying_Behavior        Pearson Correlation                       1               .506
                                 Sig. (2-tailed)                                           .000
                                 N                                       145                145

          Quality_Packing        Pearson Correlation                     .506                 1
                                 Sig. (2-tailed)                         .000
                                 N                                       145                145

          **. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis 3:

H1: there is relationship between Buying Behavior and Quality of Packing.
H0: there is no relationship between Buying Behavior and Quality of Packing.


Table 5.18 represents the table of correlations. Where two variables buying behavior
and Quality of Packing are positively correlated (r= .506, p = .000). There is moderate
relation between these two variables which is significant. We will accept H1 and reject
H0.

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The results clears that the consumer also evaluate the products on the behalf of its
packaging quality. The better quality of package is proffered by customer.




                                               Table 5.19

                                                Correlations

                                                              Buying_Behavior    Font_Style

           Buying_Behavior        Pearson Correlation                       1            .574
                                  Sig. (2-tailed)                                        .000
                                  N                                       145            145

           Font_Style             Pearson Correlation                     .574                1
                                  Sig. (2-tailed)                         .000
                                  N                                       145            145

           **. Correlation is significant at the 0.01 level (2-tailed).



Hypothesis 4:

H1: there is relationship between Buying Behavior and Font Style.
H0: there is no relationship between Buying Behavior and Font Style.

Table 5.19 represents the table of correlations. Where two variables buying behavior and
Font Style are positively correlated (r= .574, p = .000). There is moderate relation
between these two variables which is significant. We will accept H1 and reject H0.
The result identifies that the font styles are also liked by customer. Consumer wants to
have new experiments with font style.


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                                               Table 5.20

                                                   Correlations

                                                             Buying_Behavior    Wraper_Design

          Buying_Behavior        Pearson Correlation                       1              .411
                                 Sig. (2-tailed)                                          .000
                                 N                                       145              145

          Wraper_Design          Pearson Correlation                     .411               1
                                 Sig. (2-tailed)                         .000
                                 N                                       145              145

          **. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis 5:

H1: there is relationship between Buying Behavior and Wrapper Design.
H0: there is no relationship between Buying Behavior and Wrapper Design.

Table 5.20 represents the table of correlations. Where two variables buying behavior and
Wrapper Design are positively correlated (r= .411, p = .000). There is moderate relation
between these two variables which is significant. We will accept H1 and reject H0.




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                                                  Table 5.21

                                                  Correlations

                                                              Buying_Behavior       Printed_information

      Buying_Behavior           Pearson Correlation                             1                  .433
                                Sig. (2-tailed)                                                    .000
                                N                                          145                      145

      Printed_information       Pearson Correlation                        .433                       1
                                Sig. (2-tailed)                            .000
                                N                                          145                      145

      **. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis 6:

H1: there is relationship between Buying Behavior and Printed Information.
H0: there is no relationship between Buying Behavior and Printed Information.

Table 5.21 represents the table of correlations. Where two variables buying behavior and
Printed Information positively correlated (r= .433, p = .000). There is moderate relation
between these two variables which is significant. We will accept H1 and reject H0.




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                                                                                            Page | 73




                                                   Table 5.22

                                                   Correlations

                                                              Buying Behavior    Packing Innovation

       Buying_Behavior           Pearson Correlation                        1                   .545
                                 Sig. (2-tailed)                                                .000
                                 N                                        145                   145

       Packing_Innovation        Pearson Correlation                      .545                        1
                                 Sig. (2-tailed)                          .000
                                 N                                        145                   145

       **. Correlation is significant at the 0.01 level (2-tailed).


Hypothesis 7:

H1: there is relationship between Buying Behavior and Packing Innovation.
H0: there is no relationship between Buying Behavior and Packing Innovation.

Table 5.22 represents the table of correlations. Where two variables buying behavior and
Printed Information positively correlated (r= .545, p = .000). There is moderate relation
between these two variables which is significant. We will accept H1 and reject H0.




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                                                                                                 Page | 74




                                 Regression Analysis


                                         Model Summary

                                                          Adjusted R       Std. Error of the 
                 Model     R          R Square             Square              Estimate

                 1           .729a            .531                  .507                  .646




In above table the R is multiple correlation coefficient, its value is 0.729. While Adjusted
R Square shows the ratio of interdependence. Value of adjusted R square is 0.507 which
is multiply by 100. It that means 50.7% of the variance in the dependent variable can be
predicted from Independent variable.



                                               ANOVAb

    Model                 Sum of Squares             df         Mean Square           F           Sig.

    1        Regression              64.787                7               9.255      22.191         .000a
             Residual                57.139               137               .417
             Total               121.926                  144


The significant level in ANOVA table shows that the combination of variables
significantly predicts the dependant variable.




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                                                                                     Page | 75




                                            Coefficientsa

                                                               Standardized 
                                Unstandardized Coefficients    Coefficients
Model                                B          Std. Error         Beta          t          Sig.

1       (Constant)                       .274           .297                         .925      .000
        Packing_Color                    .237           .079              .238   2.988         .003
        Background                       .208           .074              .213   2.821         .004
        Quality_Packing                  .059           .079              .059       .748      .001
        Font_Style                       .247           .084              .228   2.938         .004
        Wraper_Design                    .040           .076              .040       .520      .004
        Printed_information              .070           .070              .075       .993      .002
        Packing_Innovation               .171           .074              .177   2.294         .003

a. Dependent Variable: Buying_Behavior




Equation for regression

The objective of the regression in this study is to find such an equation that could be used
to find the impact of predictors on dependent variable. The specified regression equation
takes the following form:



S = α+ β1(PC) + β2(BI) + β3(PM) + β4(FS) + β5(DOR) + β6(PI) + β7(INV)




Where
Packaging color = PC


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A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior
A project report on role of packaging on consumer buying behavior

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A project report on role of packaging on consumer buying behavior

  • 1. Projectsformba.blogspot.com Page | 1 Thesis On Role Of Packaging On Consumer Buying Behavior Projectsformba.blogspot.com
  • 2. Projectsformba.blogspot.com Page | 2 Role Of Packaging On Consumer Buying Behavior A dissertation Presented to the Faculty of the Management Sciences Department, Superior Group of Colleges College, University Campus, Lahore. In particular fulfillment of the Requirements for the Degree of Masters in Business Administration By Projectsformba.blogspot.com
  • 3. Projectsformba.blogspot.com Page | 3 OFFICIAL RECOGNITION STATEMENT: I ………….. declare that this thesis is my own work and has not been submitted in any form for another degree or diploma at any university or other institute of tertiary education. Information derived from the published and unpublished work of others has been acknowledged in the text and a list of references is given in the bibliography. I hereby certify that this paper represent my own invention, that where the language of others is set out, quotation marks so indicate , and that correct credit is given where I have used the language , ideas, expression or writing of a different. Signature Projectsformba.blogspot.com
  • 4. Projectsformba.blogspot.com Page | 4 Role Of Packaging On Consumer Buying Behavior A dissertation Presented to the Faculty of the Management Sciences Department, Superior Group of Colleges College, University Campus, Lahore. In particular of the Requirements fro the Degree of masters in Business Administration By Approved By: ______________________________________ ______________________________________ ______________________________________ ______________________________________ Received By: ______________________________________ ______________________________________ ______________________________________ ______________________________________ Projectsformba.blogspot.com
  • 5. Projectsformba.blogspot.com Page | 5 DEDICATION We are dedicating our work to our parents and respected teacher Prof Ilyas , who have played a vital role in our studies and have guided us at every step with their precious ideas. No doubt this dedication is insufficient and we can never repay for the role which they have played in our studies but we are sure that their work will prove itself an asset in our life Projectsformba.blogspot.com
  • 6. Projectsformba.blogspot.com Page | 6 Acknowledgement I am very thankful to …………. which gave us valuable information. We pay gratitude …………. giving valuable guideline. We are also very thankful to all the participants who helped us a lot by giving up to date information. We are very proud of our teacher …………. whose help and instructions enable us to bind papers into project manner. We are very thankful to him. Projectsformba.blogspot.com
  • 7. Projectsformba.blogspot.com Page | 7 PREFACE “The most beautiful things we can experience are the mysterious .It is source of all true art and science” (Albert Einstein, 1930) This thesis is based on the topic which is assigned to us by our respected teacher Prof Ilyas, the topic which I took for it: Role Of Packaging On Consumer Buying Behavior In the thesis, I have covered all the topics related to Packaging and Buying Behavior.. Projectsformba.blogspot.com
  • 8. Projectsformba.blogspot.com Page | 8 Table of Contents Abstract 11 Chapter # 1 Introduction 12 Objectives of the study 13 Key terms Defined 14 Research Question 14 Chapter # 2 Literature Review 15 Chapter # 3 Theoretical foundation 26 Consumer Buying Behavior 26 Stages of the Consumer Buying Process 27 Types of Consumer Buying Behavior 29 Packaging 39 Objectives of packaging 39 Theatrical Frame work 41 Dependent Variable 42 Independent Variable 42 Packaging color 43 Background-image 44 Packaging Material 44 Font Style 45 Design of wrapper 45 Printed Information 45 Innovation 46 Projectsformba.blogspot.com
  • 9. Projectsformba.blogspot.com Page | 9 Chapter # 4 Tools of Data Collection 47 Sampling Technique and Sample 47 Measures 47 Methodology 48 Chapter # 5 Reliability Test 50 Descriptive Analysis 51 Scatter-Plot Matrix 55 Correlation Analysis 62 Hypothesis 1: 62 Hypothesis 2: 63 Hypothesis 3: 64 Hypothesis 4: 65 Hypothesis 5: 66 Hypothesis 6: 67 Hypothesis 7: 68 Regression Analysis 69 Equation for regression 70 Hypothesis 1: 72 Hypothesis 2: 72 Hypothesis 3: 72 Hypothesis 4: 72 Hypothesis 5: 72 Hypothesis 6: 72 Hypothesis 7: 72 Projectsformba.blogspot.com
  • 10. Projectsformba.blogspot.com Page | 10 Chapter # 6 Discussion: 74 Conclusions 75 Recommendations 78 Summary 79 Areas of future research 79 References 80 Appendix 85 Questionnaire 85 Projectsformba.blogspot.com
  • 11. Projectsformba.blogspot.com Page | 11 Abstract The aim of this thesis is to get the A study to point toward role of packaging on consumer buying behavior. The basic purpose of behind it to find out how such factors are behind the success of packaging. According to this research I try to find the positive relationship between independent variable and dependent variables. For collecting the data I will use the questionnaire, while for analysis I will use SPSS 16. A sample of 145 consumers will be selected to test the reliability of the model. The significance of the study, its delimitation and limitations are discussed. The research is based in Pakistan. The consumer buying behavior is dependent variable. The packaging is the most important factor. Packaging elements like Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed Information and Innovation is taken as predictors. Due to increasing self-service and changing consumers’ lifestyle the interest in package as a tool of sales promotion and stimulator of impulsive buying behavior is growing increasingly. So package performs an important role in marketing communications, especially in the point of sale and could be treated as one of the most important factors influencing consumer’s purchase decision. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer’s purchase decision. By this article we seek to reveal elements of package having the ultimate effect on consumer choice. Taking into consideration that package could be treated as a set of various elements communicating different messages to a consumer; the research model was developed and tested in order to reveal impact of visual and verbal package elements on consumer’s purchase decisions. Projectsformba.blogspot.com
  • 12. Projectsformba.blogspot.com Page | 12 CHAPTER #1 INTRODUCTION CHAPTER CONTENTS Introduction Objectives of the study Key terms Defined Research Question Projectsformba.blogspot.com
  • 13. Projectsformba.blogspot.com Page | 13 Introduction In nowadays competitive environment the role of package has changed due to increasing self-service and changing consumers’ lifestyle. Firms’ interest in package as a tool of sales promotion is growing increasingly. Package becomes an ultimate selling proposition stimulating impulsive buying behavior, increasing market share and reducing promotional costs. According to Rundh (2005) package attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about product. Also package imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behavior (Wells, Farley & Armstrong, 2007). Thus package performs an important role in marketing communications and could be treated as one of the most important factors influencing consumer’s purchase decision. In this context, seeking to maximize the effectiveness of package in a buying place, the researches of package, its elements and their impact on consumer’s buying behavior became a relevant issue. Literature analysis on question under investigation has shown that there is no agreement on classification of package elements as well as on research methods of package impact on consumer’s purchase decision. Some of researchers try to investigate all possible elements of package and their impact on consumer’s purchase decision (Silayoi & Speece, 2004; Silayoi & Speece, 2007; Butkeviciene, Stravinskiene & Rutelione, 2008), while others concentrates on separate elements of package and their impact on consumer buying behavior (e.g., Vila & Ampuero, 2007; Madden, Hewett & Roth, 2000; Underwood et al., 2001; Bloch, 1995). Moreover some researchers investigate impact of package and its elements on consumer’s overall purchase decision (e.g., Underwood et al., 2001), while others – on every stage of consumer’s decision making process (e.g., Projectsformba.blogspot.com
  • 14. Projectsformba.blogspot.com Page | 14 Butkeviciene et al., 2008). Furthermore the abundance of scientific literature on this issue do not provide unanimous answer concerning impact of package elements on consumer’s buying behavior: diversity of the results in this area depends not only on research models constructed and methods employed, but on the context of the research too. All above mentioned confirms the necessity to investigate this issue in more detail. In the light of these problematic aspects, research problem could be formulated as following question: what elements of a package have an ultimate effect on consumer purchase decision? The aim of this paper – basing on theoretical analysis of package elements and their impact on consumer‘s purchase decision empirically reveal the elements having the ultimate effect on consumer choice in a case of different products. . Objectives of the study • To find out the effect of packaging on the buying behavior. • Theoretical analysis of package elements and their impact on consumer‘s purchase decision empirically reveal the elements having the ultimate effect on consumer choice in a case of different products • To check the effect of packaging elements on the buying behavior. • To measure the relative impact of each packaging element on the consumer. • To identify the elements which should be highlight while design the packaging. Projectsformba.blogspot.com
  • 15. Projectsformba.blogspot.com Page | 15 Key terms Defined Consumer Buying Behavior Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants Packaging Packaging can be defined quite simply as an extrinsic element of the product. Packaging is the container for a product Research Question: Main Question Role of Packaging on consumer buying behavior. Projectsformba.blogspot.com
  • 16. Projectsformba.blogspot.com Page | 16 CHAPTER #2 LITERATURE REVIEW CHAPTER CONTENTS Literature Review Projectsformba.blogspot.com
  • 17. Projectsformba.blogspot.com Page | 17 Literature Review Rita Kuvykaite (2009) has descriptive research. According to Rita package attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about product. Also package imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi & Speece, 2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behavior (Wells, Farley & Armstrong, 2007). Thus package performs an important role in marketing communications and could be treated as one of the most important factors influencing consumer’s purchase of package, its elements and their impact on consumer’s buying behavior became a relevant issue. He basing on theoretical analysis of package elements and their impact on consumer‘s purchase decision empirically reveal the elements having the ultimate effect on consumer choice. Research methods that Rita used is systematic and comparative analysis of scientific literature; empirical research There are six variables that must be taken into Consideration by producer and designers when creating efficient package: form, size, color, graphics, Material and flavor. Similarly, Kotler (2003) distinguishes six elements that according to him must be evaluated when employing packaging decisions: size, form, material, color, text and brand. The research result of Rita shows the impact of package elements on consumers purchase decisions can be stronger. He conclude that Package could be treated as one of most valuable tool in today’s marketing communications, necessitating more detail analysis of its elements and an impact of those elements on consumers buying behavior. The impact of package and its elements on consumer’s purchase decision can be revealed by analyzing an importance of its separate elements for consumer’s choice. Projectsformba.blogspot.com
  • 18. Projectsformba.blogspot.com Page | 18 Bed Nath Sharma Dec. 2008 studied New Consumer Products Branding, Packaging and Labeling in Nepal. This paper focuses on existing practice of branding, packaging and labeling of new products in consumer product manufacturing units. The study method was Descriptive presentation of facts collected through questionnaire survey concerned with different section of consumer new products (soap, biscuit, noodles, cigarettes and The study further investigates the new consumer product packaging and labeling status in manufacturing units. They are aware about the value of packaging and labeling. Majority of the consumer products 84.37% (27 out of 32 responses) are using product label as a simple tag attached to the product or an elaborately designed graphic that is part of the package. Alice Louw (2006) has studied The Power of Packaging the people belonged to Age 20-30 years old University graduates were taken for research.20 respondents were asked to rank 5 water bottles in terms of their overall appeal. Following this, they were given a questionnaire and asked to rate each of the bottles on 20 statements related their packaging. For the remaining 20 respondents, the order of the process was switched: they rated the bottles first and then ranked them. The statements ranged from functional attributes (e.g. easy to drink from, right size) to more emotive, non-functional attributes (e.g. I like the colors, high quality). For both groups there was a clear winner and a clear loser in terms of the rankings. However, although the top brand chosen was consistent in both groups, the worst brand differed. The group that ranked the bottles first showed more variance in terms of their responses (Variance 1.33) than the second group who rated the attributes first (variance 0.89). This Packaging plays an important role in the marketing context. His research results that right packaging can help a brand carve a unique position in the marketplace and in the minds on consumers. John Th Gersen (2000) worked on The Ethical Consumer. Moral Norms and Packaging Choice published in Journal of Consumer Policy Kluwer Academic Publishers. Printed in Projectsformba.blogspot.com
  • 19. Projectsformba.blogspot.com Page | 19 the Netherlands. The paper presents a study of a case with these two characteristics: Danish consumers’ choice presents a study of a case with these two characteristics: Danish consumers’ choice of environment-friendly packaging. With regard to this case, the evidence supports the claim. A majority of Danish consumers have developed personal norms about choosing environment-friendly packaging and the personal norm is a significant predictor of their (self-reported) propensity to choose environment-friendly packaging in the supermarket. Renaud LUNARDO 2007 has a great research on the influence of label on wine consumption. its effects on young consumers’ perception of authenticity and purchasing behavior The main objective of the paper is to identify the effects of authenticity on purchase behavior. They used a repertory grid (RG) approach as a methodological framework in order to know which pattern of features is better at inducing purchase. All the relationships between authenticity provided by the label of bottles and consumer behavior attributes (performance risk, perceived price and purchase intentions) have all been tested by using linear regressions. This study was intended to provide a more complete understanding of the influence of the authenticity perceive from the label of bottled wine. As an attempt to extend the research on the influence label of bottled wine can have on consumers’ decisions of buying, the current it is clear from these findings is the major role played by labels. L Renaud 2007 worked on The Influence of Eco-Labeling on Consumer Behavior. The main objective of this study was to assess the relative importance of the labeling in Packaging compared to other product attributes (like brand, price, etc.) for consumers’ buying decisions. The methodological approach that they chose was discrete choice analysis, which is particularly powerful for this kind of analysis. Further this study attempts to analyze if the importance of the labeling and packaging differs between product groups. They surveyed a total of 302 customers; Two thirds of the interviews were Projectsformba.blogspot.com
  • 20. Projectsformba.blogspot.com Page | 20 conducted in the German-speaking. The Variables chose within this study are , present mood, time, buying purpose With regard to sustainability marketing, Time. The most important result of analysis is the significant willingness to pay for Packaging energy efficient products. Adelina Broadbridge & Henry Morgan (2007), consumer buying behavior and perception toward retail and brand baby products. A two-stage research methodology consisting of both qualitative and quantitative research techniques was adopted. The population was defined as ‘parents of children under the age of five who use baby care products’. Both the qualitative and quantitative research showed that respondents adopted similar risk reduction strategies in their purchase of baby care products. This research investigated consumer perceptions and buying behavior of baby care products. The results of the primary research indicated that consumers need to feel confident with the product in terms of reliability and performance and packaging. Bytyqi Hysen*, Vegara Mensur (2008) have research on analysis of consumer buying behavior in regard to dairy products in kosovo. This survey was carried out by the Department of Livestock and Veterinary Sciences, Agriculture Faculty of Prishtina, Kasovo during 2007. Interviews of 304 respondents were conducted in super-markets (677) and mini-markets (397) and later 23 interviews were completed in green market mainly for Sharri cheese and curd. To study the reasons for choosing milk products upon supply, a coding approach from 1- 5 was used (1 = very important; 2 = highly important; 3 = average; 4 = less important; 5 = not important). Perception of consumers about dairy products was assessed using different variables i.e. habits, trust, price, quality, package, age of consumer, origin of product, type of shop, brand and gender of consumer. It was conclusion after analysis that the packaging has great effect on the purchase of dairy products. Projectsformba.blogspot.com
  • 21. Projectsformba.blogspot.com Page | 21 Rita Kuvykaite1, Aistė Dovaliene2, Laura Navickiene3 (2009) worked on impact of package elements on consumer purchase decision economics & management. Material are the most important visual elements for purchasing both milk (size and material 3.80) and washing-powder (resp.: 3.87 and 3.41); whereas, in this case form, color and graphic could be treated as unimportant elements of package. When analyzing importance of verbal elements, it could be stated that product information (4.24 for milk and 4.06 for washing-powder) and country-of-origin (resp.: 4.22 and 3.88) are the most important elements. Furthermore its worth to add, that producer and brand couldn’t be underestimated too, because the importance of both of these elements is treated by customers above the average. Comparing the impact of visual and verbal elements of package on consumer’s purchase decision it could be stated that verbal elements are more important than visual ones, when purchasing both milk and washing-powder. According to the research model developed the impact of package’s elements on consumer’s purchase decision depending on time pressure, consumer’s involvement level and individual characteristics were analyzed. H Ahasanul ,(K Ali 2009) measured the Factors Influencing Buying Behavior of Piracy Impact to Malaysian. A structured questionnaire was used to collect data whereby it was served as primary data to answer the research questions and objectives planning to find out the factors that plays a vital role about consumers perception towards pirated products. It can be identified that the dependent variable is consumer perception on piracy. Where else the independent variables would be divided to social influence, personality/believe, culture, and the economy. These are the factors that could influence consumers’ perception on piracy thereby supporting out dependent variable. Social influence would include susceptibility, which means an individual might purchase a pirated product merely because his/ her friend or family members bought the product and introduced it to them. Projectsformba.blogspot.com
  • 22. Projectsformba.blogspot.com Page | 22 Ulrich R. Orth (2009) worked on Packaging Design as resource for the construction of Brand Identity. A thorough review of the literature on packaging design reveals that there are no meaningful guidelines for developing holistic packaging design, Shapes, Finishes, Sizes, Images, Typography, Colors, Impressions, Purchase Intention, and Brand. This research was conducted by collecting information and data in four stages. First, a review of the branding literature determined a list of strategically relevant brand impressions for wine. Second, appropriate wine packaging design elements were identified and a sample of real and representative designs was selected. Third, professionals in the design and advertising industry rated wine packaging designs on the previously identified design elements. This research aimed at generating guidelines for managing strategic brand impressions, namely brand identity created by the wine packaging design Kriti Bardhan Gupta (2009) has study on Consumer Behavior for Food Products in India. primary data was collected from 326 respondents in Uttar Pradesh and National Capital Region The relative importance of various food purchasing criteria was estimated for four different food categories, food and vegetables; milk and milk products; food grains and pulses; and processed foods on 1-5 scale, The present study explored the consumer behavior for food products in India from different perspectives. People accepted the fact that their food habits get affected with the shifting to a new region but many basic buying and consumption behavior do not change. Some of the changes in buying and consumption behavior of relocated people, which were observed after their settlement to a new region, were not significantly different from the level of changes in behavior of non-moving people. However, compared to the last 10 years, people have started preferring more healthy foods and are willing to try out new dishes. They tend to learn cooking and eating new food items after relocation without discontinuing their traditional food items. There is also influence of children on the type of food items that they eat. This paper has shown that impulse buying is indeed a relevant factor in CE retailing, thus justifying the use of sales packaging. However, optimization is still important. From an Projectsformba.blogspot.com
  • 23. Projectsformba.blogspot.com Page | 23 economical and environmental perspective it is very costly to apply sales packaging (with additional material use and transport volume) to products that do not need them, or to apply them in an ineffective way. Economical costs and environmental impact can be expressed in a single score, indicating the packs performance. To allow proper management of the pack design the sales performance should be expressed in as simple a way as possible, preferably also a single score. As calculating the sales performance is impossible a test will need to be used. The pressure from time-to-market in the CE industry, demands that the test be relatively simple. S Nuntasaree and Dr. E Barry (2008) published a paper with subject of a model of male and consumer behavior in buying skin care products in Thailand.. The conceptual model of male consumer behavior in buying skin care products beliefs in product attributes Quality, Price, Brand, Packaging, Advertising, Promotion, Salesperson, Distribution. This study used a quantitative research method. A convenience sample with a shopping mall- intercept technique was employed for the sampling method. The closed-ended questionnaire developed from standard questions of relevant literature was chosen as a research instrument. The Statistical Package for the Social Sciences program (SPSS) version 15.0 was used in this study with a 0.05 level of significance for all of the statistical assessments. The data set was screened and examined for incorrect data entry, missing values, normality and outliers. Several studies have investigated issues such as packages as a means of attracting the attention of consumers (Underwood et al., 2001; Garber et al., 2000; Goldberg et al, 1999; Schoormans & Robben, 1997). Other studies researched packages as a means of communication as well as a means of communicating brand and product meaning (Underwood & Klein, 2002; Garber et al., 2000, Schoormans & Robben, 1997; Gordonet al., 1994; Homer & Gauntt, 1992; Rigaux-Bricmont, 1981; McDaniel & Baker,1977). Projectsformba.blogspot.com
  • 24. Projectsformba.blogspot.com Page | 24 Packages are found to attract attention (Underwood et al., 2001; Garber et al., 2000;Goldberg et al., 1999; Schoormans & Robben, 1997). In fact, Goldberg et al. (1999) found that by dismissing such non-verbal signs as colors, the attention to verbal signs can be increased. Pictures on packages are emphasized to attract attention, particularly when consumers are not very familiar with the brands (Underwood et al., 2001). Furthermore, packages are claimed to attract attention when their appearances are not typical within a product class (Garber et al., 2000; Schoormans & Robben 1997). In other words, past research has discovered that deviating packages attract attention. Other studies show that deviating package colors and shapes attract attention (Garber etal., 2000; Schoormans & Robben 1997). Underwood et al. (2001), on the other hand, found that pictures on packages attract attention particularly in cases when consumers are less familiar with a brand. Studies that have focused on other single signs than pictures on packages have found that such single package signs as colors (Gordon et al., 1994), brand names (Rigaux-Bricmont, 1981), and materials (McDaniel & Baker, 1977) convey brand meaning. Pires Gon¸calves, Ricardo (2008) worked on Product Characteristics and Quality Perception, according to him When they choose among competing products consumers are faced with quality and product performance uncertainty, hence, they rely on cues as extrinsic attributes, for instance brand, price, package and warranty, as signals of perceived quality. Little research has been done on packages as extrinsic attributes used by consumers as signs of perceived quality, thus this study is a small contribution to that lack of scholarly research on packages. Colors and shapes are important elements of marketing strategies, and they are both essential features of packages, especially in product labels. Labels are one of the most important features of product packaging, and they are designed to communicate a message. The model proposed in this study builds on previous models of consumer quality perception and signals of quality from product cues. Projectsformba.blogspot.com
  • 25. Projectsformba.blogspot.com Page | 25 In this research, colors and shapes combinations in labels are considered as the extrinsic attributes used as signals of quality by consumers. Liang Lu (2008) worked on a paper :Packaging as a strategic tool University of Halmstad school of Business and Engineering. Packaging is an important part of the product that not only serves a functional purpose, but also acts as a mean of communicative information of the products and brand character. Packaging must be functional; it must protect the products in good storage, in shipment and often in use. Besides, it has also the function that can give customers the ease of access and use on the purpose of convenience. After looking at Kolter theory about packaging, we will turn to different theory relating to packaging design and its important elements in order to help us to solve the first research question. Judy Rex, Stuart Wai and Antonio Lobo (2003), it is An Exploratory Study into the Impact of Color And Packaging as Stimuli in the Decision Making Process for a Low Involvement Non-Durable Product The consumers and the manager agreed that important factors when deciding which packet of potato crisps to purchase were the quality, the brand and the price of the product, with flavor also being an important factor for the consumers. The consumers used a constant sum scale (out of 100) to rate the six attributes of flavor, quality, brand, price, size and shape, and the color of the packaging. Overall, the consumers indicated that the flavor of the product was easily the most important stimulus when selecting potato crisps with an average rating of 38 points. This was about twice as important as the quality (21 points), which was more important than the brand (14 points) and the price (13 points). While brand and price were of about equal importance, P.H.K.Prathiraja and A.Ariyawardana (2003) has a great study in the impact of lutritional labeling on Consumer Buying Behavior. This study shows that consumers use nutritional labeling when making a purchasing decision and that it is especially because Projectsformba.blogspot.com
  • 26. Projectsformba.blogspot.com Page | 26 of health consciousness. A majority of the respondents revealed that they are willing to pay something additional for the nutritional information provided on food items. Of those who are willing to pay something additional, a greater proportion was in the age category 36 to 50 years, have had tertiary education and the households had less than 4 members. K Sony (2008) studied the consumer responses toward attribute framing in product packaging. The main purpose of this study is to investigate the impact of message framing, level of involvement, and numerical difference on consumer response. Fresh- milk product was chosen as the object for experiment. This study has the following suggestion for packaging design based on the findings. Fresh milk is commonly considered as health-related product. The study is advantageous in giving marketers a more thorough picture of how message framing affects consumer response in various numerical alternatives and level of involvement. It will also be helpful in developing successful packaging strategy. For future study, different types of products can be investigated further. Assoc. Professor Jane (2005), Consumer Response to Sponsorship Leveraged Packaging (SLP). Structural equation modeling (SEM) was used to analyses the data from the experiment. This program of research aims to test a model that examines the structural relationships between SLP and consumer attitudes and purchase intentions toward the sponsors’ products as well as the factors that impact this relationship. Research suggests sponsorship leverage packaging may act in a similarly way to celebrity endorsement on product packaging, implying that FMCG brands may benefit from marketing strategies that communicate the sponsorship relationship on packaging. It is critical that brand managers identify the affect SLP has on consumer behavior and evaluate the degree to which it can enhance communication of the sponsorship relationship in the marketplace. This paper outlines a framework of consumer response to SLP, proposing a three step process of exploratory and experimental methodologies. The outcomes from the research Projectsformba.blogspot.com
  • 27. Projectsformba.blogspot.com Page | 27 will contribute to a better understanding of sponsorship effects on consumer behavior and provide managers with the means to develop more effective branding strategies and promotions. Projectsformba.blogspot.com
  • 28. Projectsformba.blogspot.com Page | 28 CHAPTER #3 Theoretical Foundation CHAPTER CONTENTS Theoretical foundation Consumer Buying Behavior Stages of the Consumer Buying Process Types of Consumer Buying Behavior Packaging Objectives of packaging Theatrical Frame work Dependent Variable Independent Variable Projectsformba.blogspot.com
  • 29. Projectsformba.blogspot.com Page | 29 Theoretical Foundation Theoretical frame-work focuses on the relationship between the dependent and independent variables. The distinction between dependent and independent variables is as important in a comparative study as in a regression analysis. Dependent variable in case of a comparative study is the one which we aim to predict and independent variables here are the ones who are used to predict the dependent variable. Role of Packaging in consumeR Buying BehavioR. Consumer Buying Behavior Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. See also consumer decision making. Purchase decision making pattern that is a complex amalgam of needs and desires, and is influenced by factors such as the consumer's (1) Societal role (parent, spouse, worker, etc.), (2) Social and cultural environment and norms, and (3) Aspirations and inhibitions Buying Behavior is the decision processes and acts of people involved in buying and using products. Projectsformba.blogspot.com
  • 30. Projectsformba.blogspot.com Page | 30 Need to understand Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: Buyer’s reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies. Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: Problem Recognition (Awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Projectsformba.blogspot.com
  • 31. Projectsformba.blogspot.com Page | 31 Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. Information search Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is chinese food indian food burger king klondike kates etc Evaluation of Alternatives Need to establish criteria for evaluation, features the buyer wants or does not want. Rank/ weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then returns to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. Projectsformba.blogspot.com
  • 32. Projectsformba.blogspot.com Page | 32 Purchase Decision Choose buying alternative, includes product, package, store, method of purchase etc. Purchase May differ from decision, time lapse between 4 & 5, product availability. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead. Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk Projectsformba.blogspot.com
  • 33. Projectsformba.blogspot.com Page | 33 The four type of consumer buying behavior are Routine Response/Programmed Behavior Buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making Buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning. The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Projectsformba.blogspot.com
  • 34. Projectsformba.blogspot.com Page | 34 Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making. Categories that Affect the Consumer Buying Decision Process A consumer, making a purchase decision will be affected by the following three factors: Personal Psychological Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Personal Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making? Young people purchase things for different reasons than older people. Psychological factors Psychological factors include: Motives A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix. MASLOW hierarchy of needs!! Physiological Safety Projectsformba.blogspot.com
  • 35. Projectsformba.blogspot.com Page | 35 Love and Belonging Esteem Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. Perception What do you see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion-Changing/twisting current received information, inconsistent with beliefs. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused? Selective Retention-Remember inputs that support beliefs, forgets those that don't. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned exposed to 1,500 advertisements per day. Can't be expected to be aware of all these inputs, and certainly will not retain many. Interpreting information is based on what is already familiar, on knowledge that is stored in the memory. Projectsformba.blogspot.com
  • 36. Projectsformba.blogspot.com Page | 36 Ability and Knowledge Need to understand individual’s capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc. South Africa...open bottle of wine and pour it!! Also educate American consumers about changes in SA. Need to sell a whole new country. When making buying decisions, buyers must process information. Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Attitudes Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions. Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Attitudes and attitude change are influenced by consumer’s personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty. There is a difference between attitude and intention to buy (ability to buy). Personality All the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: Projectsformba.blogspot.com
  • 37. Projectsformba.blogspot.com Page | 37 Work a holism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Buying Behavior; this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept. Lifestyles Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology. Projectsformba.blogspot.com
  • 38. Projectsformba.blogspot.com Page | 38 Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture. Opinion leaders Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase Roles and Family Influences Role...things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer/e. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: • Many family decisions are made by the family unit • Consumer behavior starts in the family unit • Family roles and preferences are the model for children's future family (can reject/ alter/etc) Projectsformba.blogspot.com
  • 39. Projectsformba.blogspot.com Page | 39 • Family buying decisions are a mixture of family interactions and individual decision making • Family acts an interpreter of social and cultural values for the individual. • The Family life cycle: families go through stages, each stage creates different consumer demands: • bachelor stage...most of BUAD301 • newly married, young, no children...me • full nest I, youngest child under 6 • full nest II, youngest child 6 or over • full nest III, older married couples with dependant children • empty nest I, older married couples with no children living with them, head in labor force • empty nest II, older married couples, no children living at home, head retired • solitary survivor, in labor force • solitary survivor, retired Reference Groups Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members. Projectsformba.blogspot.com
  • 40. Projectsformba.blogspot.com Page | 40 Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda, tries to disassociate from the "biker" group. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. Social Class An open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes. Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names. Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite Upper-middle class, 12.5%, college graduates, managers and professionals Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends Working class, 38%, average pay blue collar workers Lower Americans-lower class, 9%, working, not on welfare Projectsformba.blogspot.com
  • 41. Projectsformba.blogspot.com Page | 41 Lower-lower class, 7%, on welfare Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping; do not engage in much pre purchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture. Culture and Sub-culture Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In american culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing. Different society, different levels of needs, different cultural values. Culture can be divided into subcultures: Geographic regions Human characteristics such as age and ethnic background. IE West Coast, teenage and Asian American. Culture effects what people buy, how they buy and when they buy. Projectsformba.blogspot.com
  • 42. Projectsformba.blogspot.com Page | 42 What is packaging? The definitions of ‘packaging’ vary and range from being simple and functionally focused to more extensive, holistic interpretations. Packaging can be defined quite simply as an extrinsic element of the product (Olson and Jacoby (1972)) - an attribute that is related to the product but does not form part of the physical product itself. “Packaging is the container for a product – encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” (Arens,1996). Objectives of packaging Packaging and package labeling have several objectives: • Physical Protection – Protection of the objects enclosed in the package from shock, vibration, compression, temperature, etc. • Barrier Protection - A barrier from oxygen, water vapor, dust, etc. • Containment or Agglomeration - Small objects are typically grouped together in one package for transport and handling efficiency. Alternatively, bulk Commodities (such as salt) can be divided into packages that are a more suitable Size for individual households. • Information transmission - Information on how to use, transport, recycle, or Projectsformba.blogspot.com
  • 43. Projectsformba.blogspot.com Page | 43 Dispose of the package or product is often contained on the package or label. • Reducing theft - Packaging that cannot be re-closed or gets physically damaged (Shows signs of opening) is helpful in the prevention of theft. Packages also Provide opportunities to include anti-theft devices. • Convenience - features which add convenience in distribution, handling, display, Sale, opening, re-closing, use, and re-use. • Marketing - The packaging and labels can be used by marketers to encourage Potential buyers to purchase the product. Packaging may be looked at as several different types. For example a transport package or distribution package can be the shipping container used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Packaging may be discussed in relation to the type of product being packaged: medical device packaging, bulk chemical packaging, over-the-counter drug packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc. Projectsformba.blogspot.com
  • 44. Projectsformba.blogspot.com Page | 44 Theatrical Frame work Independent Variable Packaging color Background Image Packaging Material Dependent Variable   Consumer Buying Font Style Behavior Design of wrapper Printed Information Innovation Projectsformba.blogspot.com
  • 45. Projectsformba.blogspot.com Page | 45 Independent Variable 1. Packaging color 2. Background Image 3. Packaging Material 4. Font Style 5. Design of wrapper 6. Printed Information 7. Innovation Dependent Variable Consumer Buying Behavior Packaging color Color plays an important role in a potential customer’s decision making process, certain colors set different moods and can help to draw attention. One good example of successful use of color psychology is in the Apple iPod advertisements; they use simple tri tone color schemes of black, white and a bright background color. The bright background color is to give the advertisement a fun feel and the contrasting white on black is to focus attention. Projectsformba.blogspot.com
  • 46. Projectsformba.blogspot.com Page | 46 Meaning of the Color Blue Blue is the most common favorite color and is liked by both genders. Blue is seen as a trustworthy, peaceful and calm color and is often related to the sky or water. Blue is usually cool and quiet but more electric shades can give a dynamic feel. Although blue has the benefits of gender indifference and being the most common favorite color, the overuse of blue can seem cold or uncaring. Blue is often used because it is the designer’s favorite color but after considering the meaning of other colors, another color may be a better choice. Meaning of the Color Green Green is related to life and nature; if you want to give your product a natural feel use green. Green is the second most popular color and the most popular shades of green are the blue-greens, which should be expected when blue and green are the two most popular colors. Yellow-greens should be avoided around food products as the color will act as an appetite-depressant. As well as the natural feel greens have, they can also signify money, health and power. Meaning of the Color Yellow Yellow is a very useful color because it is the most easily noticed, it will grab the attention of a person so can be a good choice for things such as magazine advertisements which may usually be ignored due to ad blindness. Yellow signifies happiness, optimism and warmth but also caution. The main advantage of yellow is its attention grabbing feature so a combination of blue and yellow can be a successful color scheme which could create a cool and calm mood from the blue but still draw attention because of the yellow. Projectsformba.blogspot.com
  • 47. Projectsformba.blogspot.com Page | 47 A sealed pack of diced pork from Tesco. It shows the cooking time, number of servings, 'display until' date, 'use by' date, weight in kg,price, price to weight ratio in both £/kg and £/lb, freezing and storage instructions. It says 'Less than 3% Fat' and 'No Carbs per serving' and includes a barcode. The Union Flag, British Farm Standard tractor logo, and British Meat Quality Standard logo are also present. Background-image The background image property specifies the background image for an element. When setting a background image, authors should also specify a background color property that will be used when the image is unavailable. Note also that when the image is available, it is rendered on top of the background color. Thus, in any transparent areas of the image, the background color will be visible. Packaging Material Any material used especially to protect something- packing, wadding. Consumer can change its decision regarding Packaging material. High quality Packaging attract consumer then low quality Packaging. The first packages used the natural materials available at the time: Baskets of reeds, wineskins (Bota bags),wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. The study of old packages is an important aspect of archaeology. Iron and tin plated steel were used to make cans in the early 19th century. Paperboard cartons and corrugated fiberboard boxes were first introduced in the late 19th century. Packaging advancements in the early 20th century included Bakelite closures Projectsformba.blogspot.com
  • 48. Projectsformba.blogspot.com Page | 48 on bottles, transparent cellophane over wraps and panels on cartons, increased processing efficiency and improved food safety. As additional materials such as aluminum and several types of plastic were developed, they were incorporated into packages to improve performance and functionality. So packaging material have strong have with buying behavior. Font Style The font style of Packaging grab customer attraction. The up gradation of IT technology have support this feature. The successful companies have best practices of the font styles. They hire specialist in composing which create mind blowing and attractive font styles. The attractive package has innovative font style. So we can say that there is relation between font style and buying behavior Design of wrapper The over all design also play a vital role in attracting the consumer. Mostly the children of 10-18 years are so sensitive to the design of wrapper. The companies try their best to create attractive design of packaging Printed Information Container or wrapper for a consumer product that serves a number of purposes including protection and description of the contents, theft deterrence, and product promotion. The labels on packages are important components of the overall marketing mix and can support advertising claims, establish brand identity, enhance name recognition, and optimize shelf space allocations. Projectsformba.blogspot.com
  • 49. Projectsformba.blogspot.com Page | 49 The consumer can change his decision on the basis of information printed on the packaging. Mostly in Merchandises and daily FMCG the consumer can perform evaluation on the basis of printed information. Innovation Innovative packaging may actually add value to the product if it meets a consumer need such as portion control, recyclability, tamper-proofing, child-proofing, easy-open, easy- store, easy-carry, and non breakability. Manufacturers today strive to have packaging that maintains the key equities of the brand, has stand out appeal on the retailer’s shelf, and is sustainable but with lower production costs. The customer can adopt product on the basis of its innovative packaging, which shows the relation between buying behavior and innovation of packaging. Projectsformba.blogspot.com
  • 50. Projectsformba.blogspot.com Page | 50 CHAPTER #4 Data & Methodology CHAPTER CONTENTS Tools of Data Collection Sampling Technique and Sample Measures Methodology Projectsformba.blogspot.com
  • 51. Projectsformba.blogspot.com Page | 51 Data & Methodology Tools of Data Collection: In order to find data on Role of packaging on consumer buying behavior. I will collect data on four variables: The first benefit to use questionnaire technique is that result. Sampling Technique and Sample The Population of my study will be students and educational. Institutions of Pakistan in which the sample size of 150 students will be taken for conducting the study by using simple random sampling in order to generalize the findings in the particular sector. Measures: . There were at least 25 questions in the survey obtaining data for one variable and some questions were directly obtaining data with no complications. The sample of questioner is available in appendix-1. Measure for each variable is defined below: Dependent Variable Consumer Buying Behavior Independent Variable Packaging color Background Image Packaging Material Projectsformba.blogspot.com
  • 52. Projectsformba.blogspot.com Page | 52 Font Style Design of wrapper Printed Information Innovation Each of above mentioned variable was measure by asking the seven questions by using the 5-points itemized rating type scale ranging from (1) strongly disagree to (5) strongly agree Methodology: To make analysis of data I will use Spss software in which we will make analysis in to two parts where part one will lead descriptive statistics that will be use to “describe and summarize data and include measures of central tendency (average) and dispersion (the spread of data or how close each other is to the measure of central tendency)” 1. Descriptive analysis I have used first techniques for generating result is descriptive statistics. It shows minimum, maximum, and Mean values of data. 2. Scattered plots A scatter plot is a type of mathematical diagram using Cartesian coordinates to display values for two variables for a set of data. The data is displayed as a collection of points, each having the value of one variable determining the position on the horizontal axis and the value of the other variable determining the position on the vertical axis. This kind of plot is also called a scatter chart, Projectsformba.blogspot.com
  • 53. Projectsformba.blogspot.com Page | 53 3. Correlation The Pearson's correlation is used to find a correlation between at least two continuous variables. The value for a Pearson's can fall between 0.00 (no correlation) and 1.00 (perfect correlation). Other factors such as group size will determine if the correlation is significant. Generally, correlations above 0.80 are considered pretty high. 4. Multiple regressions Linear regression analysis estimates the coefficients of a linear equation, involving one or more independent variables, that best predict the value of the dependent variable. Projectsformba.blogspot.com
  • 54. Projectsformba.blogspot.com Page | 54 CHAPTER #5 Empirical Findings CHAPTER CONTENTS Reliability Test Descriptive Analysis Scatter-Plot Matrix Correlation Analysis Regression Analysis Equation for regression Projectsformba.blogspot.com
  • 55. Projectsformba.blogspot.com Page | 55 Empirical Findings Reliability Test Dependent Variable The Value of Cronbach's  Reliability Statistics Alpha is bigger then 0.7 and  Cronbach's  Alpha N of Items also positive, which shows  .782 2 the reliability of dependent  variables. Independent Variable The data of independent variables or predictors is reliable. Because the value of Cronbach's  Alpha is 0.858 which is greater then 0.7. The value is also positive,  so the data used for analysis is reliable. Reliability Statistics Cronbach's  Alpha N of Items .858 7 Projectsformba.blogspot.com
  • 56. Projectsformba.blogspot.com Page | 56 Descriptive Analysis Table 5.1 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Buying_Behavior 145 1 5 3.73 .920 Valid N (listwise) 145 In the above table 5.1 the minimum values, maximum values, mean values and the values of standard deviation of dependent Variable have been shown. Mean value provides the idea about the central tendency of the values of a variable. Number of observations of each variable is 145. Standard deviation and the extreme values (minimum in comparison to maximum value) give the idea about the dispersion of the values of a variable from its mean value. The Minimum value is 1 while Maximum value is 5. The Mean value is 3.73 with standard deviation of 0.92 Table 5.2 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Packing_Color 145 1 5 3.55 .924 Valid N (listwise) 145 In the above table 5.2 the minimum values is 1, maximum values 5, and mean values 3.55 while the values of standard deviation is 0.924. Mean value provides the idea Projectsformba.blogspot.com
  • 57. Projectsformba.blogspot.com Page | 57 about the central tendency of the values of a variable. Number of observations of each variable is 145. Table 5.3 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Background 145 1 5 3.66 .942 Valid N (listwise) 145 The above table 5.3 the minimum value of 1 and maximum value of 5. The values can be deviated by 0.942. Which means that the mean value can varied by +0.942 or -0.942. Table 5.4 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Quality_Packing 145 1 5 3.72 .924 Valid N (listwise) 145 The above table 5.4 the minimum value of 1 and maximum value of 5. The values can be deviated by 0.924. Which means that the mean value can varied by +0.924 or -0.924. Projectsformba.blogspot.com
  • 58. Projectsformba.blogspot.com Page | 58 Table 5.5 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Font_Style 145 2 5 3.71 .849 Valid N (listwise) 145 In the above table 5.5 the minimum values is 1, maximum values 5, and mean value is 3.71 while the values of standard deviation is 0.849. Mean value provides the idea about the central tendency of the values of a variable. Number of observations of each variable is 145. Table 5.6 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Wraper_Design 145 1 5 3.70 .927 Valid N (listwise) 145 In the above table 5.6 the minimum values is 1, maximum values 5, and mean value is 3.70 while the values of standard deviation is 0.927. Mean value provides the idea about the central tendency of the values of a variable Table 5.7 Projectsformba.blogspot.com
  • 59. Projectsformba.blogspot.com Page | 59 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Printed_information 145 1 5 3.68 .992 Valid N (listwise) 145 In the above table 5.7 the minimum values is 1, maximum values 5, and mean value is 3.68 while the values of standard deviation is 0.992. Mean value provides the idea about the central tendency of the values of a variable Table 5.8 Descriptive Statistics N Minimum Maximum Mean Std. Deviation Packing_Innovation 145 1 5 3.55 .953 Valid N (listwise) 145 In the above table 5.9 the minimum values is 1, maximum values 5, and mean value is 3.55 while the values of standard deviation is 0.953. Mean value provides the idea about the central tendency of the values of a variable. Projectsformba.blogspot.com
  • 60. Projectsformba.blogspot.com Page | 60 Scatter-Plot Matrix Figure 5.9 Figure 5.9 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and color of packaging. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and color of packaging. This means that if the attractive colors Projectsformba.blogspot.com
  • 61. Projectsformba.blogspot.com Page | 61 are used in packaging then consumer will purchase product and the above results have been confirmed by the table of correlations. Figure 5.10 Figure 5.10 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and background of packaging. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and color of packaging. This means that if the Projectsformba.blogspot.com
  • 62. Projectsformba.blogspot.com Page | 62 attractive background are used in packaging then consumer will purchase product and the above results have been confirmed by the table of correlations. Figure 5.11 Figure 5.11 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and quality of packaging. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and quality of packaging. This means that if the fine quality is Projectsformba.blogspot.com
  • 63. Projectsformba.blogspot.com Page | 63 used in packaging material then consumer will attract and the above results have been confirmed by the table of correlations. Figure 5.12 Figure 5.12 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and font style used in packaging. If we Projectsformba.blogspot.com
  • 64. Projectsformba.blogspot.com Page | 64 observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and quality of packaging. Figure 5.13 Projectsformba.blogspot.com
  • 65. Projectsformba.blogspot.com Page | 65 Figure 5.13 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and design of wrapper. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and wrapper design. This means that attractive wrapper will attract consumer and the above results have been confirmed by the table of correlations. Figure 5.14 Projectsformba.blogspot.com
  • 66. Projectsformba.blogspot.com Page | 66 Figure 5.14 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and design printed information. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and wrapper design. This means that if the printed information is used in packaging then consumer will attract and the above results have been confirmed by the table of correlations. Figure 5.15 Projectsformba.blogspot.com
  • 67. Projectsformba.blogspot.com Page | 67 Figure 5.15 shows the results of scatter plot matrix where we intend to have some idea about the relationship between buying behavior and Packaging Innovation. If we observe then the flow of line is come from right to left which shows the positive relationship between buying behavior and wrapper design. This means that if the printed information is used in packaging then consumer will attract Correlations Table 5.16 Correlations Buying_Behavior Packing_Color Buying_Behavior Pearson Correlation 1 .591 Sig. (2-tailed) .000 N 145 145 Packing_Color Pearson Correlation .591 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 1: H1: there is relationship between Buying Behavior and Packing color H0: there is no relationship between Buying Behavior and Packing color Table 5.16 represents the table of correlations. Where two variables – buying behavior and Packing color– are positively correlated (r= .591, p = .000). There is moderate Projectsformba.blogspot.com
  • 68. Projectsformba.blogspot.com Page | 68 relation between these two variables which is significant. We will accept H1 and reject H0. So we can say that the attractive packaging color can attract consumer. Consumer likes the colored packaging. It also implies that using attractive colors in packaging we can grab customer attention. Table 5.17 Correlations Buying_Behavior Background Buying_Behavior Pearson Correlation 1 .554 Sig. (2-tailed) .000 N 145 145 Background Pearson Correlation .554 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 2: H1: there is relationship between Buying Behavior and Background of Packing. H0: there is no relationship between Buying Behavior and Background of Packing. Projectsformba.blogspot.com
  • 69. Projectsformba.blogspot.com Page | 69 Table 5.17 represents the table of correlations. Where two variables – buying behavior and Background of Packing are positively correlated (r= .554, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. It mean that the customer can adopt product on the behalf of its packaging background. This result is also useful to marketer so that they create products with best possible background image. Table 5.18 Correlations Buying_Behavior Quality_Packing Buying_Behavior Pearson Correlation 1 .506 Sig. (2-tailed) .000 N 145 145 Quality_Packing Pearson Correlation .506 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 3: H1: there is relationship between Buying Behavior and Quality of Packing. H0: there is no relationship between Buying Behavior and Quality of Packing. Table 5.18 represents the table of correlations. Where two variables buying behavior and Quality of Packing are positively correlated (r= .506, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. Projectsformba.blogspot.com
  • 70. Projectsformba.blogspot.com Page | 70 The results clears that the consumer also evaluate the products on the behalf of its packaging quality. The better quality of package is proffered by customer. Table 5.19 Correlations Buying_Behavior Font_Style Buying_Behavior Pearson Correlation 1 .574 Sig. (2-tailed) .000 N 145 145 Font_Style Pearson Correlation .574 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 4: H1: there is relationship between Buying Behavior and Font Style. H0: there is no relationship between Buying Behavior and Font Style. Table 5.19 represents the table of correlations. Where two variables buying behavior and Font Style are positively correlated (r= .574, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. The result identifies that the font styles are also liked by customer. Consumer wants to have new experiments with font style. Projectsformba.blogspot.com
  • 71. Projectsformba.blogspot.com Page | 71 Table 5.20 Correlations Buying_Behavior Wraper_Design Buying_Behavior Pearson Correlation 1 .411 Sig. (2-tailed) .000 N 145 145 Wraper_Design Pearson Correlation .411 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 5: H1: there is relationship between Buying Behavior and Wrapper Design. H0: there is no relationship between Buying Behavior and Wrapper Design. Table 5.20 represents the table of correlations. Where two variables buying behavior and Wrapper Design are positively correlated (r= .411, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. Projectsformba.blogspot.com
  • 72. Projectsformba.blogspot.com Page | 72 Table 5.21 Correlations Buying_Behavior Printed_information Buying_Behavior Pearson Correlation 1 .433 Sig. (2-tailed) .000 N 145 145 Printed_information Pearson Correlation .433 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 6: H1: there is relationship between Buying Behavior and Printed Information. H0: there is no relationship between Buying Behavior and Printed Information. Table 5.21 represents the table of correlations. Where two variables buying behavior and Printed Information positively correlated (r= .433, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. Projectsformba.blogspot.com
  • 73. Projectsformba.blogspot.com Page | 73 Table 5.22 Correlations Buying Behavior Packing Innovation Buying_Behavior Pearson Correlation 1 .545 Sig. (2-tailed) .000 N 145 145 Packing_Innovation Pearson Correlation .545 1 Sig. (2-tailed) .000 N 145 145 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis 7: H1: there is relationship between Buying Behavior and Packing Innovation. H0: there is no relationship between Buying Behavior and Packing Innovation. Table 5.22 represents the table of correlations. Where two variables buying behavior and Printed Information positively correlated (r= .545, p = .000). There is moderate relation between these two variables which is significant. We will accept H1 and reject H0. Projectsformba.blogspot.com
  • 74. Projectsformba.blogspot.com Page | 74 Regression Analysis Model Summary Adjusted R  Std. Error of the  Model R R Square Square Estimate 1 .729a .531 .507 .646 In above table the R is multiple correlation coefficient, its value is 0.729. While Adjusted R Square shows the ratio of interdependence. Value of adjusted R square is 0.507 which is multiply by 100. It that means 50.7% of the variance in the dependent variable can be predicted from Independent variable. ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 64.787 7 9.255 22.191 .000a Residual 57.139 137 .417 Total 121.926 144 The significant level in ANOVA table shows that the combination of variables significantly predicts the dependant variable. Projectsformba.blogspot.com
  • 75. Projectsformba.blogspot.com Page | 75 Coefficientsa Standardized  Unstandardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) .274 .297 .925 .000 Packing_Color .237 .079 .238 2.988 .003 Background .208 .074 .213 2.821 .004 Quality_Packing .059 .079 .059 .748 .001 Font_Style .247 .084 .228 2.938 .004 Wraper_Design .040 .076 .040 .520 .004 Printed_information .070 .070 .075 .993 .002 Packing_Innovation .171 .074 .177 2.294 .003 a. Dependent Variable: Buying_Behavior Equation for regression The objective of the regression in this study is to find such an equation that could be used to find the impact of predictors on dependent variable. The specified regression equation takes the following form: S = α+ β1(PC) + β2(BI) + β3(PM) + β4(FS) + β5(DOR) + β6(PI) + β7(INV) Where Packaging color = PC Projectsformba.blogspot.com